1.            Goods returned from a debtor will be recorded in:

(a) Returns Inwards Book                             (b) Returns Outward Book          

(c) Sales Book                                                    (d) Purchases Book

Ans:      (a) Returns Inwards Book

 

2.            Purchase of computer for office use on credit will be recorded in:-

(a) Journal Proper                                            (b) Purchase Book

(c) Cash Book                                                     (d) Purchase Returns Book

Ans:       (a) Journal Proper

 

3.            Discounted a B/R of ₹ 5000 at 5% through bank. The amount will be shown in ........

(a) Dr. side of cash book with ₹ 4750 in bank column

(b) Cr side of cash book with ₹ 4750 in bank column

(c) Dr side of cash book with ₹ 250 in bank column

(d) Cr side of cash book with ₹ 250 in bank column

Ans:       (a) Dr. side of cash book with ₹ 4750 in bank column

 

4.            Which of the following is the most appropriate for cash book?

(a) Cash Book is a Day Book

(b) Cash Book is a Ledger

(c) Cash Book is Day Book and Ledger both

(d) Cash Book is neither Day Book nor a Ledger

ans:        (c) Cash Book is Day Book and Ledger both         

 

5.            The closing bank balance after recording the following transactions in a Cash and bank column cash Book will be

(i) cash deposited in a bank ₹ 25,000

(ii) Received Cheque from Pooja ₹ 4,750 in full settlement of her debt of  ₹ 5,000

(iii) Withdrew from Bank for office use ₹ 3,000

(iv) Paid salary to staff by cheque ₹ 2,000

(a) ₹ 24,750                                                         (b) ₹ 29,750

(c) ₹ 25,000                                                         (d) ₹ 24,500

Ans:       (a) ₹ 24,750

 

6.            Which of the following is correct?

(a) Cash Book is neither a journal nor a ledger

(b) Cash Book is a journal but not a ledger

(c) Cash Book is a ledger but not a journal

(d) Cash Book works as a journal as well as a ledger

Ans:       (d) Cash Book works as a journal as well as a ledger

 

 

7.            Purchase of furniture on credit by a Jewellery store is recorded in

(a) Journal Proper                                            (b) Purchases Book

(c) Cash Book                                                     (d) Bank Pass Book

Ans:       (a) Journal Proper

 

8.            Statement 1: Cash Book is a Principal Book Statement 2: Cash Book is a Subsidiary Book Choose the Correct option

              (a)  Only statement 1 is correct    (b) Only statement 2 is correct

              (c)   Both statements are correct (d) Both statements are incorrect

Ans:       (c) ) Both statements are correct             

 

9.            July 1 Ram sold Goods to ₹ 1200 Amit ₹ 60,000. July 5 Cheque received from Amit in full settlement after 2% discount. July 8. Amit’s Cheque deposited in bank. July 10 Amit’s cheque dishonoured.

Now at the time of dishonoured of cheque, what will be the correct option in the Books of Ram

         (a) Discount allowed account

         (b) Discount will be debited by ₹ 1,200 allowed account will be credited by ₹ 1,200

         (d) Discount received account will be debited by ₹ 1,200

         (d) Discount received account will be credited by ₹ 1,200

Ans:  (b) Discount will be debited by ₹ 1,200 allowed account will be credited by ₹ 1,200

 

10.          The balance of sales day book is ₹ 40,000. ₹ 10,000 received from debtors. Then balance of sales day book will be transferred to (i) with amount of (ii) .................. .

              (a) (i) Sales A/c (ii) ₹ 40.000            (b) (i) Trial Balance (ii) ₹ 40,000

              (c) (i) Sales A/c (ii) ₹ 30,000            (d) (i) Trial Balance (ii) ₹ 20,000

Ans:       (a) (i) Sales A/c (ii) ₹ 40.000         

 

11.          Identify the transaction which is not recorded in cash book?

              (a) Cheque of ₹ 4,000 issued to creditors but not presented for payment.

              (b) Wrongly credited by bank ₹ 500

              (c )bank charges ₹ 200 recorded in pass book twice.

              (d)  A Customer has directly deposited in our bank account ₹ 600

Ans:       (b) Wrongly credited by bank ₹ 500

               

 

12.          A cheque of ₹ 15,000 received from Suneel in full settlement of his dues of ₹ 18,000 on 15th July,2017. This cheque was deposited in bank on 25th July, 2017. On 15th July this cheque will be recorded .........

                (a) In Debit side of Cash Book     (b) In Credit side of Cash Book

                (c)  In Journal Proper                     (d) No where

Ans:         (c) In Journal Proper

 

13.          It is a reduction in the value of goods sold and is allowed by seller of goods due to poor quality of goods. It is ......... .

                (a) Trade Discount                           (b) Rebate

(c) Cash Discount                             (d) All of Above

 Ans :     (b) Rebate

               

14.          Match the following

Column A                            Column B

(A)Bank Balance               (I) Credit Balance only

(B)Cash Balance                                (II) Debit Balance only

(C)Bills Payable                 (III) Either Credit or Debit Balance Choose the correct option:

(a) A- I, B-III, C-II              (b) A-II, B-I, C-III

(c) A-III, B- II, C-                                (d) A-II, B-III, C-I

Ans:       (c) A-III, B- II, C-I                              

 

15.          The document prepared by trader when he returns the goods to supplier of firm

is:

(a)Credit note                   (b) Debit note

(c) Pay in slip                      (d) Receipt

Ans:       (b)debit note                    

 

16.          Which of the following transactions will not be recorded in Journal Proper. If all the subsidiary books are maintained?

(a)Depreciation charged on machinery ₹ 5,850

(b)Purchase of office furniture from Kohinoor furniture for ₹ 10,000

(c)Purchase of goods worth ₹ 12,800 from Rama and Company.

(d)Outstanding salary due to Ramesh a regular employee ₹ 12,000

Ans:       (c) Purchase of goods worth ₹ 12,800 from Rama and Company

 

17.          A Petty Cashier was being given ₹ 10,000 on 1st October, 2017 and he spent

 ₹ 7,800 during the month of October. The remaining balance of ₹ 2,200 kept with petty cashier is (i) for the concern and he will be given (ii) on 1st November if the firm is following Imprest system.

(a) (i) Assets;                     (ii) ₹ 10,000

(b)(i) Assets;                      (ii) ₹ 7,800

(c)(i) Liability;                     (ii) ₹ 10,000

(d)(i) Liability;                    (ii) ₹ 7,800

Ans:       (b) (i) Assets;                     (ii) ₹ 7,800

               

 

18.          Total of Returns Outward Book is .........

(a)Debited to Sales Return Account

(b)Shown as Debit item in Trial Balance

(c)Credited to Purchase Return Account

(d)Not being shown anywhere else

Ans:       (c) Credited to Purchase Return Account