Sunday, 23 August 2020

Accounting Multiple Choice Questions with answers | Download PDF for MCQs


MCQs BASED ON "ACCOUNTING EQUATION, JOURNAL, and  VOUCHER "

1. Voucher is prepared for

(a) cash received and paid

(b) cash/credit sale

(c) cash/credit purchase

(d) All of the above


2. Voucher is prepare from

a) documentary evidence

b) journal entry

c) ledger account

d) All of the above


3. Which document is issued at the time of purchase return?

a) Debit note

b) Credit note

c) ₹1,000 note

d) None of these


4. Identify the transaction for which transfer voucher is prepared?

a) A payment of ₹10,000 towards rent

b) A receipt of ₹15,000 towards professional fee

c) A credit sale of ₹5,000 to Ram

d) None of the above

5. At the time of preparing voucher of sales, the accountant of Arihant publication requires original copy of sales bill. Identify the correct statement from the following.

(a) No, the accountant is not correct with his stand

(b) Yes, the accountant is correct with his stand

(c) Somehow the accountant is correct

(d) None of the above


6. Ramdas purchases goods worth ₹15,000 from Rahimdas and received a invoice of the same, the payment of these goods are payable after one month. Identify the correct statement from the following.

a) Ramdas issued credit memo of ₹15,000 to Rahimdas

b) Rahimdas issued a credit memo of ₹15,000 to Ramdas

c) Rahimdas issued a cash memo of ₹15,000 to Ramdas

d) None of the above


7. Which of the following is correct?

a) Liabilities = Assets + Capital

b) Assets = Liabilities — Capital

c) Capital = Assets — Liabilities

d) Capital = Assets + Liabilities


8. Mohit has the following assets and liabilities as on 31st March, 2017. Ascertain his capital. Cash ₹50,000, Bank ₹95,000, Debtors ₹36,000, Creditors ₹44,000, Plant and machinery ₹1,60,000, Building ₹4,00,000, Furniture₹ 48,000, Bills receivable ₹1,13,000, Bills payable ₹47,000.

a) ₹8,11,000

b) ₹1,50,000

c) ₹8,10,000

d) ₹9,50,000


(Questions 9 - 10 are based on this paragraph)

Peva has started a business on 1st April, 2015 with a capital of ₹10,000 and loan of ₹5,000 borrowed from Ramesh. During 2016-17, he had introduced additional capital of ₹7,500 and had withdrawn ₹2,500 for personal use. On 31st March, 2017 his assets were ₹30,000.

9. What is the status of his capital as on 31st March, 2017?

(a) ₹25,000

(b) ₹20,000

(c) ₹27,500

(d) ₹30,000


10. Ascertain the profit or loss incurred during the year 2016-17.

(a) ₹10,000

(b) ₹15,000

(c) ₹16,000

(d) ₹12,500


11. On 31st March, 2017, the total assets and external liabilities were ₹2,00,000 and ₹6,000, respectively. During the year, the proprietor had introduced additional capital of ₹20,000 and had withdrawn ₹12,000 for personal use. He made a profit of ₹20,000 during the year. Calculate the capital as on 1st April, 2016.

(a) ₹1,66,000

(b) ₹1,76,000

(c) ₹1,94,000

(d) ₹ 2,24,000


12. "The company repays its bank loan". In the light of this statement, all the given statements are correct except one. Identify that wrong statement.

(a) There is decrease in assets

(b)There is decrease in liability

(c) There is no effect on owner's equity

(d)There is increase in equity


13. A creditor of ₹9,500 is settled by a final payment of ₹9,000. How will it effect the capital?

(a) Increase by ₹9,500

(b) Decrease by ₹500

(c) Increase by ₹500

(d) Decrease by ₹9,500


14. The journal entry to record the sale of services on credit should include

a) debit to debtors and credit to capital

b) debit to cash and credit to debtors

c) debit to fees income and credit to debtors

d) debit to debtors and credit to fees income


15. The ledger folio column of journal is used to

(a) record the date on which amount posted to a ledger account

(b) record the number of ledger account to which information is posted

(c) record the number of amounts posted to ledger account

(d) record the page number of ledger account


16. When a entry is made in journal

(a) assets are listed first

(b) accounts to be debited listed first

(c) accounts to be credited listed first

(d) accounts may be listed in any order


17. If a transaction is properly analysed and recorded

(a) only two accounts will be used to record the transaction

(b) one account will be used to record transaction

(c) one account balance will increase and another will decrease

(d) total amount debited will equals total amount credited


18. Trial balance is prepared from

(a) Journal

(b) Ledger

(c) Ledger folio

(d) Journal folio


19. The book in which all accounts are maintained is known as

(a) Cash book

(b) Journal

(c) Purchases book

(d) Ledger


20. Each journal entry is followed by

(a) narration

(b) description

(c) sequence

(d) random


21. Balancing of account means

(a) total of debit side

(b) total of credit side

(c) difference in total of debit and credit

(d) None of the above


22. Which of the following is a rule for debit of nominal account?

(a) Debit the receiver

(b) Debit what comes in

(c) Debit all expenses and losses

(d) All of the above


23. The journal entry to record purchase of equipment for ₹2,00,000 cash and a

balance of ₹8,00,000 due in 30 days include

(a) debit equipment for ₹2,00.000 and credit cash ₹2.00.000

(b) debit equipment for ₹10.00,000, credit cash ₹2,00,000 and creditors ₹8,00,000

(c) debit equipment ₹2.00.000 and credit debtors₹8,00,000

(d) debit equipment ₹10,00,000 and credit cash ₹10,00,000


24. Each account in ledger is opened on separate

(a) register

(b) book

(c) journal

(d) page


25. The journal entry to record payment of monthly bill will include

(a) debit monthly bill and credit capital

(b) debit capital and credit cash

(c) debit monthly bill and credit cash

(d) debit monthly hill and credit creditors


26. Journal entry to record salaries will include

(a) debit salaries, credit cash

(b) debit capital, credit cash

(c) debit cash, credit salary

(d) debit salary, credit creditors


27. The amount due from customers which could not be recovered and requires to be written-off is booked into

(a) bad debt recovered account

(b) cash withdrawal

(c) goods withdrawn

(d) bad debts account


28. Cash withdrawn by proprietor should be credited to

a) Drawings a/c

b) Capital a/c

c) Profit and Loss a/c

d) Cash a/c


29. Recording of transactions in journal is called

a) Costing

b) Posting

c) Journalising

d) Recordrly


30. A purchase of machine for cash should be debited to

a) Drawings account

b) Capital account

c) Profit and loss account

d) Cash account


31. A firm has interest on investment becoming due but not yet received. What will be the entry in this situation?

a) Income a/c Dr

To accrued income a/c

b) Accrued income a/c Dr

To assets a/c

c) Accrued income a/c Dr

To Purchases a/c

d) Accrued income a/c Dr

To income a/c


Answers for Accounting Equation, Journal and Vouchers:

1) (d)

2) (a)

3) (a)

4) (c)

5) (a)

6) (b)

7) (c)

8) (a)

9) (a)

10) (a)

11) (a)

12) (d)

13) (c)

14) (d)

15) (d)

16) (b)

17) (d)

18) (b)

19) (b)

20) (a)

21) (c)

22) (c)

23) (b)

24) (d)

25) (c)

26) (c)

27) (d)

28) (a)

29) (c)

30) (b)

31) (d)


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