Mcq on subsidiary books

 

  COMMERCE DADA YT

 Subsidiary Books

 

1. The balance on the debit side of bank column in cash book indicates.

A. Total amount withdrawn from bank                       B. Total amount deposited in the bank

C. Cash at bank                                                                 D. None of these

 

2. The balance of cash column is always

A. Debit                                                           B. Credit

C. Both A. and B.                                              D. None

 

3. The balance of petty cash book is

A. A liability                         B. An expense

C. A gain                               D. An asset

 

4. The petty cash book is used for recording

A. Petty cash payment                                                    ‌    B. Petty cash receipts

C. All cash paymentD. All of these

 

5. The cash book in book keeping records

A. All receipts and payment in cash.B. All cash and credit sale of goods

C. All credit and cash purchase of goodsD. All of above

 

6. Cash Discount is provided on

A. Prompt paymentB. Sales

C. PurchaseD. None of these

 

7. Cash book records

A. All cash receipts and paymentsB. Cash and credit sale of goods

C. Both (A. and (B.D. None of these

 

8. If Ram has sold goods for cash, the entry will be recorded.

A. In the cash bookB. In the sales book

C. In the journal profitD. None of these

9. Cash account will show

A. Debit or credit balanceB. Credit balance

C. Debit balanceD. All of these

 

10. Cash book is a

A. Subsidiary JournalB. Subsidiary Journal and Ledger Account

C. Ledger AccountD. None of these

 

Answer:

1.A , 2.A , 3.D , 4.A , 5.A , 6.A , 7.A , 8.A , 9.D , 10.A.

 

11. A columnar cash book records

A. All cash transactions onlyB. Both cash and bank transactions excepting discounts.

C. All cash transactions excepting cash D. Both cash and bank transactions including  discount                                                                                          

   purchase  and sale.                                                                                      

12. A customer’s cheque returned dishonoured is recorded in

A. Return inward bookB. Bi receivable

C. Cash bookD. Journal

 

13. Cash sales are recorded in

A. Sales BookB. Cash Book

C. JournalD. None of these

 

14. While posting from the credit side of the cash book.

A. Only the individual accounts are posted.B. Individual accounts are debited and the total a cash column

                                                                                                 is credited.

C. Only the individual accounts are creditedD.Individualaccountarecreditedandtotalofcashcolumnis

andnoneedtopostthecashcolumntotal                 debited.

 

15. While posting from the debit side of cash book?

A. Only the individual accounts are posted.B. Individual accounts are credited and the total of cash

columnisdebited.

C. Only the individual account are debited.               D.Individualaccountsaredebitedandthe total of

 and cash column total is ignore.                                       cash column is credited    

 

16. Petty cash system is designeda

A. to meet the needs of small business.B. to cover small and miscellaneous income.

C. to cover the small expenditure to be paid in cash.D. to cover both small incomes and expenditure.

 

17. The term imprest system is used in relation to

A. Purchase bookB. Sales book

C. Cash bookD. Petty cash book

 

18. When any entry in made on the both sides of cash book it is called?

A. General entryB. Double entry

C. Compound entryD. Contra entry

 

19. A check received and paid into the Bank on same date.

A. Bank column of cash bookB. Cash column of cash book

C. Both the cash and bank column of cash bookD. None of above

 

20. The transaction will be treated on a contra entry when

A. Cash withdrew from bank for personal use.B. Cheque received from customer and depositor.

C. Cash drew from bank for office use.D. None of above

 

Answer:

11.D , 12.C , 13.B , 14.B , 15.B , 16.C , 17.D , 18.D , 19.A , 20.C.

 

21. Which one of the following is not correct for cash book?

A. It is dual bookB. It is a journalised ledger

C. It records liabilitiesD. Both B. and C.

 

22. What of the following item is not included in the cash book?

A. Purchase of Rs. 10000B. Sale of Rs. 20000

C. Received cash from Salman 2000D. Credit sale of 25000

 

23. Contra entry is recorded in?

A. Double column cash bookB. Single column cash book

C. Three column cash bookD. A. and C.

 

24. A book in which cash balance and bank balance an simultaneously maintained is known as

A. Simple cash bookB. Single column cash book

C. Double column cash bookD. None of these

 

25. When a check of customer in returned dishonoured, the customers account will be

A. DebitedB. Credited

C. Becomes a liabilityD. None of these

 

26. Cash account is related to the

A. Personal accountB. Artificial personal account

C. Nominal accountD. Real account

 

27. Purchase of goods on credit is recorded in

A. Sales bookn                                                           B. cash book

C. Purchase bookD. None of these

 

28. Bank charges and interest are recorded in

A. Cash columnB. Discount column

C. L/F columnD. Bank column

 

29. No. of column in simple column cash book on cash side by

A. threeB. Four

C. fiveD. six

 

30. Introduction of capital by owner is recorded on which side of cash book.

A. Debit sideB. Credit side

C. Both A. and B.D. None of these

 

Answer:

31.C , 32.D , 33.C , 34.C , 35.B , 36.D , 37.C , 38.D , 39.B , 40.A.

 

31. Cash discount is allowed on ____________ repayment of debit.

A. Lump sumB. Prompt

C. CashD. None of these

 

32. Purchase of office equipment for cash will be recorded on which of the following sides of a cash book.

A. Debit sideB. Credit side

C. None of theseD. Both (A. and (B.

 

33. Cash book with cash and discount column is mostly referred as

A. Simple cash bookB. Double column cash book

C. Three column cash bookD. Petty cash book

 

34. Post dated cheque is considered as

A. CashB. Bonus Balance

C. Account ReceivableD. Cash Reserve

 

35. Credit balance in cash book indicates

A. Bank balanceB. Cash at Bank

C. Bank overdraftD. None of these

 

36. Discount received is recorded on which of the following side

A. Receipt SideB. Payment Side

C. IncomeD. Expenditure

 

37.Whenafirmmaintainsacashbook,itneednotmaintain;

A.JournalProperB.Purchases(journal)book

C.Sales(journal)bookD.Bankandcashaccountintheledger.

 

38.Doublecolumncashbookrecords:

A.AlltransactionsB.Cashandbanktransactions

C.OnlycashtransactionsD.Onlycredittransactions

 

39.Goodspurchasedoncasharerecordedinthe:

A.Purchases(journal)bookB.Sales(journal)book

C.Cashbook.D.Purchasesreturn(journal)book

 

40.Cashbookdoesnotrecordtransactionof:

A.CashnatureB.Creditnature

C.CashandcreditnatureD.Noneofthese

 

Answer:

31.B , 32.B , 33.B , 34.C , 35.C , 36.B , 37.D , 38.B , 39.C , 40B.

 

41.Whichofthefollowingspecializedjournalsrecords"goodsreturnedbycustomers"?

A.PurchasejournalB.Salesjournal

C.PurchasesreturnjournalD.Salesreturnjournal

 

42.Salesoncreditisrecordedinwhichofthefollowingjournal?

A.PurchasejournalB.Salesjournal

C.PurchasesreturnjournalD.Salesreturnjournal

 

43.Transactionsthatabusinessdoesn'trecordinanyspecialisedjournalarerecordedinwhichofthefollowingjournalsordaybooks?

A.CashpaymentsjournalB.Cashreceiptsjournal

C.PurchasesreturnjournalD.Generaljournal

 

44.Anothernameofjournal

A.SpecializedjournalB.Daybook

C.CashbookD.Recordbook

 

45.Whichofthefollowingspecialisedjournalswillrecord"goodsreturnedbythebusiness".

A.PurchasejournalB.Salesjournal

C.PurchasesreturnjournalD.Salesreturnjournal

 

46.Salesandpurchasejournaldon'trecord

A.Creditsales.B.Creditpurchases

C.Creditsalesandpurchases.D.Cashsalesandpurchases

 

47.Cashreceivedfromdebtorisrecordedinwhichofthefollowingspecializedjournals?

A.PurchasejournalB.Salesjournal

C.CashreceiptsD.Cashpaymentsjournal

 

48.Whichofthefollowingisatypeofcashreceiptjournal+cashpaymentjournal?

A.BankstatementB.Statementofcashflow

C.CashbookD.Cashdocuments

 

49.Cashpurchasesisrecordedinwhichofthefollowingspecializedjournals?

A.Purchasejournal.B.Salesjournal

C.PurchasesreturnjournalD.Cashpaymentsjournal

 

50.Abriefexplanationrecordedbeloweveryentryingeneraljournaliscommonlyknownas

A.NarrationB.Explanation

C.SummaryD.Otherinformation

 

ANSWER:

41.D,42.B,43.D,44.B,45.C,46.D,47.C,48.C,49.D,50.A.

 

51.Purchasesbookrecords:

A.Allcashpurchase.B.Allcreditpurchases

C.Creditpurchasesofgoodsintrade.D.Noneoftheabove

 

52.JournalProperiscalled-

A.PrincipalBookB.SubsidiaryBook

C.DayBook.D.ProperBook

 

53."Saleofoldfurniture"willberecordedinwhichofthefollowingspecialisedjournals?

A.PurchasejournalB.Salesjournal

C.GeneraljournalD.Cashreceiptjournal

 

54.Creditnoteisthebasisforrecordingatransactioninwhichofthefollowingspecializedjournals?

A.Purchasejournal.B.Salesreturnjournal

C.GeneraljournalD.Cashreceiptjournal

 

55.Specializedjournalsaremoreadequateforwhichtypeofbusinesses?

A.SmallbusinessesB.Bigbusinesses

C.Soleproprietorship.D.Partnership

 

56.Whichofthefollowingisknownasanevidencethatatransactiontookplace?

A.Cashreceiptsjournal.B.Generaljournal

C.SourcedocumentD.Cashbook

 

57."Businesspaidrentamountingto$100"whichofthefollowingspecializedjournalsrecordsthistransaction?

A.CashreceiptsjournalB.Cashpaymentsjournal

C.Salesjournal.D.Purchasejournal

 

58.CreditmemoorcreditnoteNo.isenteredinwhichofthefollowingjournal?

A.Generaljournal.B.Cashjournal

C.PurchasejournalD.Salesreturndaybook

 

59.JournalProperiscalled-

A.PrincipalBook.B.SubsidiaryBook

C.DayBookD.ProperBook

 

60.Purchasesbookrecords:

A.Allcashpurchase.B.Allcreditpurchases

C.Creditpurchasesofgoodsintrade.D.Noneoftheabove

 

ANSWER:

51.C,52.B,53.,54.B,55.B,56.C,57.B,58.A,59.B,60.C.

 

61.Apurchasebookisusedtorecordall......................madebythebusinessfromitssuppliers.

A.purchasesB.creditpurchases

C.cashpurchasesD.noneofthese

 

62.......................isanallowanceordeductionmadefromtheinvoicepriceofgoodssold.

A.tradediscountB.cashdiscount

C.commissionD.noneofthese

 

63.......................representsanotesenttothesupplierforthevalueofgoodsreturnedbythebusiness.

A.debitnoteB.creditnote

C.goodsreturnednoteD.noneofthese

 

64.Recordingoftransactionsinthebooksoforiginalentryis......................undersubsidiarybooks

A.simplifiedB.complicated

C.modifiedD.noneofthese

 

65.Astatementshowingparticularsofthegoodsboughtbyatraderoncreditisknownas......................

A.billB.invoice

C.voucherD.noneofthese

 

66.A......................isusedforrecordingallresidualtransactionswhichcannotfindplaceinanyofthesubsidiarybooks.

A.journalproperB.ledger

C.generaljournalD.noneofthese

 

67.Whengoodsaretakenbackfromoranallowanceisgrantedtoacustomer,thenoteisknownas.......................

A.debitnoteB.creditnote

C.goodsreturnednoteD.noneofthese

 

68.Thestatementcontainingvariousledgerbalancesonaparticulardateisknownas......................

A.trialbalanceB.balancesheet

C.cashflowstatementD.noneofthese

 

69.Ifthetwosidesofthetrialbalancetally,itisanindicationofthefactthatthebooksofaccountare......................accurate

A.logicallyB.recordically

C.arithmeticallyD.noneofthese

 

70.SalesJournalrecordsall......................saleofgoods

A.debitB.credit

C.cost.D.noneofthese

 

Answer:

61.B,62.A,63.A,64.A,65.B,66.A,67.B,68.A,69.C,70.B.

 

71.Thefirstbookoforiginalentryis-

A.Journal.B.Ledger

C.TrialBalance.D.Noneofthese.

 

72.‘Drawings’fallsunderwhichaccount-

A.Personalaccount.B.Realaccount

C.Nominalaccount.D.Noneofthese.

 

73.Incometaxistreatedas-

A.BusinessExpense‌.B.‌‌DirectExpense

C.PersonalExpense.D.IndirectExpense.

 

74.Achequeonwhichtwoparallellinesaredrawninthelefttopcorneriscalled–

A.Bearercheque.B.Traveller’scheque

C.Accountpayeecheque.D.Noneofthese.

 

75.Cashpurchaseofgoodsisrecordedin-

A.Purchasebook.B.Salesbook

C.Cash–book.D.Noneofthese.

 

76.Creditpurchaseoffurnitureshallberecordedin-

A.Purchasebook.B.Journalbook

C.Cash–book.D.Noneofthese.

 

77.Whopreparesadebitnote-

A.Seller.B.Purchaser

C.Cashier.D.Noneofthese.

 

78.Returnofgoodsbyacustomerisrecordedin-

A.Purchasebook.B.Salesbook

C.Salesreturnbook.D.Purchasereturnbook.

 

79.Totalofthesetransactionsispostedinpurchaseaccount:

A.Purchaseoffurniture..B.Cashandcreditpurchase

C.Purchasesreturn.D.Purchaseofstationery

 

80.Theperiodictotalofsalesreturnjournalispostedto:

A.Salesaccount.B.Goodsaccount

C.Purchasesreturnaccount.D.Salesreturnaccount

 

Answer:

71.B,72.A,73.D,74.C,75.C,76.B,77.B,78.C,79.B,80.D.

 

81.Whichofthefollowingspecialisedjournalsrecords"goodsreturnedbycustomers"?

A.PurchasejournalB.Salesjournal

C.Purchasesreturnjournal.D.Salesreturnjournal

 

82.Salesoncreditisrecordedinwhichofthefollowingjournal?

A.Purchasejournal.B.Salesjournal

C.Purchasesreturnjournal.D.Salesreturnjournal

 

83.TransactionsthataBUSINESSdoesn'trecordinanyspecialisedjournalarerecordedinwhichofthefollowingjournalsordaybooks?

A.Cashpaymentsjournal.B.Cashreceiptsjournal

C.Purchasesreturnjournal.D.Generaljournal

 

84.Anothernameofjournalis

A.SpecializedjournalB.Daybook

C.Cashbook.D.Recordbook

 

85.Whichofthefollowingspecialisedjournalswillrecord"goodsreturnedbytheBUSINESS"?

A.Purchasejournal.B.Salesjournal

C.PurchasesreturnjournalD.Salesreturnjournal

 

86.Salesandpurchasejournaldon'trecord

A.Creditsales.B.Creditpurchases

C.Creditsalesandpurchases.D.Cashsalesandpurchases

 

87.CashreceivedfromdebtorisrecordedinwhichofthefollowingSPECIALIZEDjournals?

A.Purchasejournal.B.Salesjournal

C.CashreceiptsD.Cashpaymentsjournal

 

88.Whichofthefollowingisatypeofcashreceiptjournal+cashpaymentjournal?

A.Bankstatement.B.Statementofcashflow

C.Cashbook.D.Cashdocuments

 

89.Cashpurchasesisrecordedinwhichofthefollowingspecializedjournals?

A.Purchasejournal.B.Salesjournal

C.Purchasesreturnjournal.D.Cashpaymentsjournal

 

90.Abriefexplanationrecordedbeloweveryentryingeneraljournaliscommonlyknownas

A.Narration.B.Explanation

C.SummaryD.Otherinformation

 

Answer:

81.D,82.B,83D,84.B,85.C,86.D,87.C,88.C,89.D,90.A

 

91.Creditpurchaseofplantandmachineryisrecordedinwhichofthefollowingjournals?

A.Generaljournal.B.Cashjournal.

C.Purchasejournal.D.Purchasereturnjournal

 

92.Debitnoteisthebasisforrecodingatransactioninwhichofthefollowingjournals?

A.Generaljournal.B.Cashjournal

C.PurchasejournalD.Purchasereturnjournal

 

93.SALEofoldfurniture"willberecordedinwhichofthefollowingspecialisedjournals?

A.Purchasejournal.B.Salesjournal

C.Generaljournal.D.Cashreceiptjournal

 

94.CreditnoteisthebasisforrecordingatransactioninwhichofthefollowingSPECIALIZEDjournals?

A.Purchasejournal.B.Salesreturnjournal

C.GeneraljournalD.Cashreceiptjournal

 

95.SpecializedjournalsaremoreadequateforwhichTYPEOFBUSINESSES?

A.Smallbusinesses.B.Bigbusinesses

C.Soleproprietorship.D.Partnership

 

96.Whichofthefollowingisknownasanevidencethatatransactiontookplace?

A.Cashreceiptsjournal.B.Generaljournal

C.Sourcedocumentc.D.Cashbook

 

97.BUSINESSpaidrentamountingto$100"whichofthefollowingspecializedjournalsrecordsthistransaction?

A.Cashreceiptsjournal.B.Cashpaymentsjournal

C.Salesjournal.D.Purchasejournal

 

98.CreditmemoorcreditnoteNo.isenteredinwhichofthefollowingjournal?

A.Generaljournal.B.Cashjournal

C.Purchasejournal.D.Salesreturndaybook

 

 

99.Creditbalanceofbankaccountincashbookshows:

A.Overdraft.B.Cashdepositedinourbank

C.Cashwithdrawnfrombank.D.Noneofthese

 

100.Theperiodictotalofpurchasesreturnjournalispostedto:

A.Purchaseaccount.B.Profitandlossaccount

C.Purchasereturnsaccount.D.Furnitureaccount

ANSWER:

91.A,92.A,93.C,94.B,95.B,96.C,97.B,98.A,99.B,100.C.