Select the most appropriate alternative from the alternatives given below and rewrite the statement.
1) …………….. means explanation of the transactions recorded in the Journal.
a) Narration b) Journalising c) posting d) Casting
Ans: a) Narration
2) …………… discount is not recorded in the books of accounts.
a) Trade b) Cash c) GST d) VAT
Ans: a) Narration
3) Recording of transaction in Journal is called …………
a) posting b) journalising c) narration d) prime entry
Ans: b) journalising
4) Every Journal entry require ………….
a) casting b) posting c) narration d) journalising
Ans: b) posting
5) The ………….. column of the Journal is not recorded at the time of journalising.
a) date b) particulars c) ledger folio d) amount
Ans: c) ledger folio
6) Goods sold on credit should be debited to ……………….
a) purchase A/c b) customer A/c c) sales A/c d) cash A/c
Ans: b) customer A/c
7) Wages paid for installation of Machinery should be debited to …………
a) wages A/c b) machinery A/c c) cash A/c d) Installation A/c
Ans: b) machinery A/c
8) The commission paid to the agent should be debited to ………………
a) drawing A/c b) cash A/c c) commission A/c d) Agent A/c
Ans: c) commission A/c
9) Loan taken from Dena Bank should be credited to …………..
a) Capital A/c b) Dena Bank A/c c) Cash A/c d) Dena Bank Loan A/c
Ans: d) Dena Bank Loan A/c
10) Purchase of animals for cash should be debited to ……………
a) Live stock A/c b) Goods A/c c) Cash A/c d) Bank A/c
Ans: a) Live stock A/c
Extra MCQ
1. ……………. discount is allowed in order to recover the amount due in time.
(a) Trade (b) Cash (c) Retail (d) Gross
Ans: (b) Cash
2. Journal is called a book of ……………. entry.
(a) Double (b) Single (c) Subsidiary (d) Prime
Ans: (a) Double
3. …………….. discount does not appear in the books of account,
(a) Cash (b) Retail (c) Net (d) Trade
Ans: (d) Trade
4. A brief description of the transaction written below each journal entry is known as ………. and its is a ………
(a)-Narration (b) Voucher (c) Explanation (d) Description
Ans: (a)-Narration
5. Amount invested in the business by its proprietor is known as ………… account and it is a ………… account.
(a) drawings, personal
(b) investment, personal
(c) capital, personal
(d) capital, nominal
Ans: (c) capital, personal
(a) Personal accounts. (b) Real (c) Liability (d) Nominal
Ans: (b) Real
7. Carriage expenses paid on new machinery should be debited to …………… Account.
(a) Carnage (b) Trading (c) Profit & loss (d) Machinery
Ans: (d) Machinery
8. Carriage expenses paid on behalf of Mukesh, a customer, should he debited ………… a/c. ,
(a) Mukesh (b) Carriage (c) Trading (d) Profit & Loss
Ans: (a) Mukesh
9. Goods withdrawn by the proprietor for his personal use should be debited to ………. a/c.
(a) Goods (b) Trading (c) Drawings (d) Profit & Loss
Ans: (c) Drawings
10. Travelling expenses of the proprietor and his family paid out of business cash will be credited to ………. a/c and debited to …………….. a/c.
(a) Family, Cash L., (B)Cash, Drawings (c) Drawings, Cash (d) Drawings, Capital
Ans: (B)Cash, Drawings
11. …………..A/c Dr.
To Bank A/c
[Being salary paid to Nitin by cheque]
(a) Nitin (b) Trading (c) Salary (d) Cheque
Ans: (c) Salary
12. Purchases A/c Dr.
To …………
[Being goods purchased from X on cash payment]
(a) Cash (b) X (c) Trading (d) Drawings
Ans: (a) Cash
13. …………A/c Dr.
To Cash A/c
[Being loan given to Y]
(a) Loan from Y (b) Bank (c) Loan to Y (d) None of the above
Ans: (c) Loan to Y
14. …………A/c Dr.
To Sales
[Being cheque received from Z on sales]
(a) Z (b) Sales (c) Bank (d) None of above
Ans: (c) Bank
15. Furniture A/c Dr.
To ……….
[Being furniture brought into the business by the proprietor ]
(a) Capital (b) Drawings (c) Investment (d) None
Ans: (a) Capital