Please refer to MCQ Questions Chapter 3 Recording of Transactions – I Class 11 Accountancy with answers provided below. These multiple-choice questions have been developed based on the latest NCERT book for class 11 Accountancy issued for the current academic year. We have provided MCQ Questions for Class 11 Accountancy for all chapters on our website. Students should learn the objective based questions for Chapter 3 Recording of Transactions – I in Class 11 Accountancy provided below to get more marks in exams.
Chapter 3 Recording of Transactions – I MCQ Questions
Please refer to the following Chapter 3 Recording of Transactions – I MCQ Questions Class 11 Accountancy with solutions for all important topics in the chapter.
MCQ Questions Answers for Chapter 3 Recording of Transactions – I Class 11 Accountancy
Question. Cash received from debtor is-
(a) Increase in stock and increase in capital
(b) Decrease in stock and decrease in capital
(c) Decrease in debtor and increase in cash
(d) Increase in stock and decrease in cash
Answer
C
Question. Goods sold costing Rs 18000 at a Profit of 25% on sales. The profit is Rs:-.
(a) 6000
(b) 4500
(c) 5000
(d) 5500
Answer
A
Question. Rent paid is a-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/c
Answer
B
Question. Interest earn but not received –
(a) Increase in cash and increase in rent
(b) Decrease in cash and decrease in rent
(c) Increase in capital and increase in Asset
(d) Increase in cash and increase in debtor
Answer
C
Question. Purchase Account is a-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative personal A/c
Answer
B
Question. Sold goods for cash costing 20000 and on credit Rs 30000 at a profit of 25%. Profit is –
(a) Rs 2500
(b) Rs 3750
(c) Rs 12500
(d) Rs 6250
Answer
C
Question. Outstanding expenses account is a-
(a) Real A/c
(b) Tangible A/c
(c) Nominal A/c
(d) Representative Personal A/c
Answer
D
Question. Identify Asset in the following:-
(a) Building
(b) Rent Paid
(c) Sales
(d) Capital
Answer
A
Question. Rent received is –
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/c
Answer
B
Question. Purchase of Goods for cash is:-
(a) Increase in stock and increase in cash
(b) Decrease in stock and decrease in cash
(c)Increase in cash and decrease in stock
(d) Increase in stock and decrease in cash
Answer
D
Question. Sold goods for cash costing 20,000 and on credit Rs 30,000 at a loss of 10%. Sales price will be-
(a) 45000
(b)55000
(c) 60000
(d) Rs 40,000
Answer
A
Question. Identify expense in the following:-
(a) Building
(b) Rent Paid
(c) Sales
(d) Capital
Answer
B
Question. Income Account is a-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative personal A/c
Answer
B
Question. Capital increased when:-
(a) Goods Purchased
(b) Rent paid
(c) Commission received
(d) Goods loss by fire
Answer
C
Question. Goods costing of Rs 2,00,000 sold at a profit of 1/4 of cost and cash discount allowed to customer 2%. Half of the payment received in cash:-
(a) Increase in cash by Rs 1,22,500 and decrease in stock by 2,00,000 and increase in debtor by Rs 1,25,000 and increase in capital by Rs 47,500.
(b) Increase in cash by Rs 1,25,500 and decrease in stock by Rs 2,00,000 and increase in debtor by Rs 1,25,000 and increase in capital by Rs 50,000.
(c) Increase in cash by Rs 1,25,000 and decrease in stock by Rs 2,00,000 and increase in debtor by Rs 1,25,000 and increase in capital by Rs 45,000.
(d) Increase in cash by Rs 1,20,000 and decrease in stock by Rs 2,00,000 and increase in debtor by Rs 1,25,000 and increase in capital by Rs 47,500.
Answer
A
Question. Goods distributed as free sample
(a) Increase in cash and increase in stock
(b) Decrease in stock and decrease in
(c) Decrease in stock and decrease in capita
l (d) Increase in stock and decrease in creditor
Answer
C
Question. Capital decreased when:-
(a) Goods sold at a loss
(b) Rent received
(c) Goods purchased
(d) Machinery purchased
Answer
A
Question. Drawing Account is a-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/c
Answer
C
Question. Sold goods costing Rs 12000 at a profit of 20% on sales the effect on accounting equation will be :-
(a) Increase in cash Rs 14400,increase in stock Rs 12000 and increase in capital Rs 2400
(b) Increase in cash Rs 15000,decrease in stock Rs 12000 and increase in capital Rs 3000
(c) Increase in cash Rs 12000,decrease in stock Rs 14400 and increase in capital Rs 2400
(d) Increase in cash Rs 14000,decrease in stock Rs 12000 and increase in capital Rs 2000
Answer
B
Question. When Insurance Claim of Rs 1,00,000 is accepted by Insurance company on loss of goods by fire costing Rs 1,50,000 a month ago, one of the following voucher is prepared
(a) Credit Voucher Rs 1,00,000
(b) Credit voucher Rs 1,50,000
(c)Transfer Voucher Rs. 1,00,000
(d)Transfer Voucher Rs 1,50,000
Answer
C
Question. Goods with drawn for personal use :-
(a) Increase in stock and increase in capital
(b) Decrease in stock and decrease in capital
(b) Increase in stock and increase in cash
(d) Increase in stock and decrease in cash
Answer
B
Question. Assets Account is a-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative personal A/c
Answer
A
Question. Purchase of furniture for cash is:-
(a) Increase in furniture and increase in cash
(b) Decrease in furniture and decrease in cash
(c) Increase in cash and decrease in furniture
(d) Increase in furniture and decrease in cash
Answer
D
Question. A cheque of Rs 10000 received from Mukesh deposited into Bank, Returned dishonored the effect on Accounting Equation will be:-
(a) Decrease in Bank by Rs10,000,Increased in Debtor by Rs10,000
(b) Decrease in Bank by Rs 10,000,Increased in Creditor by Rs10,000
(c) Decrease in Bank by Rs10,000,Increased in Capital by Rs10,000
(d) Decrease in Bank by Rs 10,000,Increased in Drawing by Rs 10,000
Answer
C
Question. Charged Depreciation on building is-
(a) Increase in building and increase in capital
(b) Decrease in building and decrease in capital
(c) Increase in building and increase in cash
(d) Increase in building and decrease in cash
Answer
B
Question. Rent received is-
(a) Increase in cash and increase in capital
(b) Increase in cash and decrease in capital
(c) Increase in capital and decrease in cash
(d) Increase in liability and increase in cash
Answer
A
Question. Ram a debtor is-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/c
Answer
C
Question. Goods purchased on credit-
(a) Increase in cash and increase in stock
(b) Decrease in cash and decrease in stock
(c) Increase in creditor and increase in stock
(d) Increase in stock and decrease in creditor
Answer
C
Question. Rent for the month of March not paid is-
(a) Increase in liabilities and increase in asset
(b) Decrease in cash and decrease in liabilities
(b) Increase in asset and increase in cash
(d) Increase in liabilities and decrease in capital
Answer
A
Question. Goods returned by customer is-
(a) Increase in cash and increase in stock-
(b) Decrease in cash and decrease in stock
(b) Increase in creditor and increase in stock
(d) Increase in stock and decrease in debtor
Answer
D
Question. Goods Given as charity (Sales price 500) of Rs 450-
(a) Increase in debtor by 500 and increase in stock by 500
(b) Decrease in cash by500and decrease in stock by 450
(c) Decrease in stock by500 and decrease in capital by 500
(d) Decrease in stock by450 and decrease in capital by 450
Answer
D
Question. Interest on capital provided is-
(a) Increase in capital and increase in cash
(b) Decrease in cash and decrease in capital
(c) Increase in capital and decrease in assets
(d) Increase in capital as well as decrease in capital
Answer
D
Question. Insurance premium of Rs 12,000 paid for one year on 1st August 2018, unexpired insurance premium is on 31st March,2019 will be-
(a)Rs 4,000
(b)Rs 5,000
(c) Rs 6,000
(d) Rs 7,000
Answer
A
Question. Goods returned to supplier costing Rs 1000 and selling Price Rs 1100-
(a) Increase in creditor by 1000 and increase in stock by 1000
(b) Decrease in cash by 1100 and decrease in stock by 1000
(c) Increase in creditor by 1100 and increase in stock by 1100
(d) Decrease in stock by 1000 and decrease in creditor by 1000
Answer
A
Question. Capital Account is –
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/c
Answer
C
Question. X started business on 1st Jan, 2019 with a capital of Rs 1,00,000 and borrowed Rs 30,000 from his friend. He made a profit of Rs 30,000 during the year and withdrew cash 10,000, closing capital is-
(a) Rs 1,20,000
(b) Rs 1,70,000
(c) Rs 1,40,000
(d) Rs 1,50,000
Answer
A
Question. The capital of a business is Rs 2,00,000 and liabilities are Rs 40,000 .The asset of business is:-
(a) Rs 2,40,000
(b) Rs 1,60,000
(c) Rs 2,80,000
(d) Rs 2,10,000
Answer
A
Question. Rahul a Creditor is-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/c
Answer
C
Question. Further capital introduced is-
(a) Increase in cash and increase in capital
(b) Decrease in cash and decrease in capital
(c) Increase in income and increase in cash
(d) Increase in assets and decrease in income
Answer
A
Question. Rent received in advance of Rs 2000-
(a) Increase in cash B 2,000 and increase in rent by 2000
(b) Decrease in cash by 2,000 and decrease in rent 2000
(c) Increase in cash by 2000 and increase in liability by 2000
(d) Increase in cash by 2000 and decrease in creditor by 2000
Answer
C
Question. Gautam who owed us Rs 25,000 is declared insolvent and 75 Paisa in a Rupee received from him. The Amount and Account would be entered to the:-
(a) Credit of discount A/c Rs 8,250
(b) Credit of bad debts A/c Rs 7,250
(c) Debit of bad debts A/c by Rs 6,250
(d) Credit the debtor A/c by Rs 4,250
Answer
C
Question. Voucher is kept for evidence according to which concept:
(a) Cost concept
(b) Matching concept
(c) Revenue concept
(d) Objectivity concept
Answer
D
Question. Repayment of loan by cheque is-
(a) Decrease in bank and decrease in liabilities
(b) Decrease in cash and decrease in liabilities
(c) Increase in asset and increase in creditor
(d) Increase in bank and decrease in liabilities
Answer
C
Question. Building purchased For Rs 24,00,000 Paid Registration charges Rs 1,00,000 and Brokerage 2%,The Cost of building is Rs ;
(a) 25,00,000
(b)25,50,000
(c)24,00,000
(d)25,48,000
Answer
A
Question. An entry made in Journal Proper if based on one of the following Vouchers:
(a) Debit Voucher
(b) Credit voucher
(c)Transfer Voucher
(d)None of the above
Answer
C
Question. A trader asked his accountant to withdraw Rs 12,000 from Bank for Business use. The accountant prepared a document and asked the trader to sign it. The document prepared will be
(a) Pay in slip
(b) Cheque
(c) Invoice
(d) Cash Memo
Answer
B
Question. Which concept is followed for preparing vouchers?
(a) Entity concept
(b) Cost concept
(c) Accrual concept
(d) Objectivity concept
Answer
D
Question. Source document prepared on charging Depreciation on Machinery Rs 2,800 will be:
(a) Debit note
(b) Credit note
(c) Invoice
(d) None of the above.
Answer
D
Question. Cash paid to creditor-
(a) Increase in cash and increase in creditor
(b) Decrease in cash and decrease in creditor
(c) Increase in cash and increase in capital
(d) Increase in capital and decrease in cash
Answer
B
Question. When Insurance Claim is accepted by Insurance company one of the following voucher is prepared
(a) Debit Voucher
(b) Credit voucher
(c) Transfer Voucher
(d) None of the above.
Answer
C
Question. A trader asked his accountant to withdraw Rs 12,000 from Bank for personal use. Name the voucher that the accountant will prepare is
(a) Debit Voucher
(b) Cheque
(c) Credit Voucher
(d) None of the above
Answer
A
Question. Goods destroyed by fire costing Rs1500 selling price Rs 2000-
(a) Increase in stock by 2000 and increase in cash by 2000
(b) Decrease in stock by 1500and decrease in capital by 1500
(c) Increase in stock by 2000 and increase in stock by 2000
(d) Increase in stock by 1500 and decrease in creditor by 1500
Answer
B
Question. Bank Account is a-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/c
Answer
C
Question. Car purchased of Rs 5,00,000 on 1stoct, 2019 and depreciation charged on car @10% p.a. by Straight line method for the year ended 31st March,2020 ,this transaction will be shown in accounting equation by-
(a) Increase in car by Rs 4,75,000 and decrease in cash by Rs 5,00,000 and decrease in capital by Rs 25,000
(b) Increase in car by Rs 5,00,000 and decrease in cash by Rs 5,00,000 and decrease in capital by Rs 50,000
(c) Increase in car by Rs 4,75,000 and decrease in cash by Rs 5,00,000 and decrease in capital by Rs 15,000
(d) Increase in car by Rs 4,75,000 and decrease in cash by Rs 4,75,000 and decrease in capital by Rs 25,000
Answer
A
Question. Goods used in making the furniture (Sales price 5000 and profit 25% on cost) the cost of goods used is Rs:-
(a) Rs 3750
(b) Rs 4250
(c) Rs 4000
(d) Rs 6250
Answer
C
Question. Basic accounting equation is-
(a) Assets= Capital+liabilities
(b) Liabilities= Assets+Capital
(c) Capital=liabilities +assets
(d) Asset=liabilities-capital
Answer
A
Question. Owner’s capital in the beginning is 1,20,000,creditor at the end Rs 1,00,000 ; Revenue during the period Rs 1,40,000 and expenses during the period are Rs 1,30,000.Owner’s capital at the end Rs:-
(a) Rs 1,30,000
(b)Rs 2,70,000
(c) Rs 2,40,000
(d) Rs 1,80,000
Answer
A
Question. Interest on Drawings-
(a) Increase in cash and increase in income
(b) Increase in capital and decrease in cash
(b) Decrease in capital and increase in capital
(d) Increase in cash and increase in capital
Answer
C
Question. Supporting document is not available for which of the following transaction:
(a) Credit purchase of goods
(b) Cash embezzlement
(c) Cash Sales
(d) Payment of electricity bill.
Answer
B
Question. A trader deposited Rs 40,000 in Bank. The accountant needs to prepare a source document which will act as an evidence of this transaction.
(a) Pay in slip
(b) Cheque
(c) Debit Note
(d) Credit Note
Answer
A
Question. Voucher relates to:
(a) Cash receipt
(b) Cash payment
(c) Credit transaction
(d) All of the above
Answer
D
Question. Which of the following statement is not true?
(a) Vouchers are prepared with the help of supporting documents.
(b) Cash-memo, Invoice are the examples of supporting documents.
(c) Debit note and Credit note are not the examples of supporting documents.
(d) To record credit transaction a transfer voucher is prepared.
Answer
C
Question. Chronological order of valid voucher would be:
(a) Date, Credit account, Voucher Number, Debit account, Narrative, Amount
(b) Voucher Number, Date, Debit account, Credit amount, Amount, Narrative
(c) Date, Debit account, Credit account, Amount, Narrative, voucher number
(d) Voucher Number, Amount, Date, Debit Account, Credit account
Answer
B
Question. A trader purchased furniture for the business for Rs 20,000 and also paid Rs 800 as carriage. The accounting voucher to be prepared to record this transaction will be
(a) Credit Voucher of Rs. 20,800
(b) Credit Voucher of Rs 20,000
(c) Debit Voucher of Rs 20,000
(d) Debit Voucher of Rs 20,800.
Answer
D
Fill In The Blanks
Question. Withdrawal of Money from bank for personal use ———– account will be debited, ———- account will be credited.
Answer
Debit-Drawing, Credit- Bank
Question. If capital is Rs 1,00,000 and outside liability Rs 2,50,000 then total assets Rs ———-.
Answer
Rs 3,50,000
Question. Assets= Capital+————–.
Answer
Liability
Question. Cycle purchased by proprietor for his daughter of Rs 9,000 out of business cash, then ———–will be debited.
Answer
Rs 9,000
Question. Paid life insurance premium of proprietor of Rs 12,000, then ———— will be debited.
Answer
Drawings
Question. Increase in assets will be ————–and decrease in assets will be ———–, if modern approach is followed.
Answer
Debited, Credited
Question. Increase in expenses will be ————–and decrease in expenses will be ———–, if modern approach is followed.
Answer
Debited, Credited
Question.Increase in income will be ————–if modern approach is followed.
Answer
Credited
Question. Increase in liability will be ————–and decrease in liability will be ———–, if modern approach is followed.
Answer
Credited, Debited
Question. Increase in capital will be ————–, if modern approach is followed.
Answer
Credited
Question. Written evidences which become basis of recording business transactions is ___________.
Answer
Source Documents
Question. Account is having ————–shape.
Answer
T-shape
Question. Salary paid of Rs 20,000 from saving bank Account, ————account will be debited and ———–account will be credited.
Answer
Salary and Capital
Question. Cash received from Debtors 19,800 against full settlement of Rs 20,000, then 200 will be debited to———-account.
Answer
Discount allowed
Question. If cash is received Rs 2,00,000 from Akshat, Akshat account will be———.
Answer
Debit
Question. Vouchers are prepared on the basis of ______________ .
Answer
Source Documents
Question. If total assets is Rs 1,30,000 and liabilities are Rs 50,000 then Net worth————–.
Answer
Rs 80,000
Question. Discount allowed is a ———– type of account as per traditional approach.
Answer
Nominal
Question. Horses purchased for business purpose will be debited to ——— account.
Answer
Livestock
Question. Delhi University is ——— ——–type of account.
Answer
Personal/ Representatives personal account
Question. Wages of Rs 20,000 and goods of Rs 3,000 is used to for installation of machinery, ———- Account will be debited by Rs ———-.
Answer
Machinery A/c, Rs 23,000
True/ False
Question. A trader purchased 10 chairs @ Rs 500 each, the transfer voucher which is prepared will show Rs 5,000.
Answer
False
Question. A trader purchased goods for Rs 60,000 from X and Company. He paid Rs 40,000 in cash. The amount that would be recorded in debit voucher is Rs 40,000 .
Answer
True
Question. Goods costing of Rs 90,000sold at a profit of 1/3 of cost, half of the payment received in cash treatment in accounting equation will be:- Increase in cash by Rs 60,000 and decrease in stock by Rs 90,000 and increase in debtor by Rs. 60,000 increase in capital by Rs 30,000.
Answer
True
Question. Interest earns but not received for of Rs 1000 during the year ended will Increase in cash and increase in rent.
Answer
False
Question. Sales Price of goods deduct from stock at the time of goods sold
Answer
False
Question. Goods costing of Rs 2,00,000 sold at a profit of 1/4 of cost and cash discount allowed to customer 2%. Half of the payment received in cash Increase in cash by Rs 1,22,500 and decrease in stock by Rs 2,00,000 and increase in debtor by Rs 125000 and increase in capital by Rs 47,500.
Answer
True
Question. Decrease in stock due to goods distributed as free sample
Answer
True
Question. Wages paid for installation Of Machinery is not cost of Machinery.
Answer
False
Question. Nominal Account includes all Tangible Asset.
Answer
False
Question. Building purchased of Rs 5,00,000 on 1stoct 2019 and depreciation charged on Building @10% p.a. by Straight line method for the year ended 31st March ,2020.This transaction will be shown in accounting equation will Increase in Building by Rs 5,00,000 and decrease in cash by Rs 5,00,000 and decrease in capital by Rs 25,000.
Answer
False
Question. Sales Account Debited for Goods given away as charity.
Answer
False
Question. Decrease in liabilities due to payment to creditors.
Answer
True
Question. Raghav, a proprietor purchased Computer for business in Cash. The accounting vouchers prepared for recording will be Transfer Voucher.
Answer
False
Question. The accounting voucher prepared to record depreciation on Machinery is Credit Voucher.
Answer
False
Question. Transactions are recorded in books of original entry on the basis of voucher and not on the basis of source documents.
Answer
True
Question. All credit transactions are recorded in the books on the basis of Transfer vouchers.
Answer
True
Question. Credit Vouchers are prepared to record cash payments.
Answer
False
Question. Credit voucher is prepared to record Cash purchases.
Answer
False
Question. An amount of Rs 500 was embezzled by an employee will be recorded on the basis of Debit voucher.
Answer
True
Match The Following
Question. Match items in List I with terms in List II using the codes given below the lists
List –I | List –II |
1- Land and Building | A- Expenses |
2- Salary | B- Liability |
C- Assets | |
D- Income |
Answer
1-C, 2-A
Question. Match items in List I with terms in List II using the codes given below the lists
List –I | List –II |
1- All expenses/losses are debit and incomes and profit are credit | A- Real Account |
2- Debit what comes in, credit what goes out | B- Personal account |
C- Nominal account |
Answer
1-C, 2-A
Question. Match items in List I with terms in List II using the codes given below the lists
List –I | List –II |
1- Electricity Charge | A- Liability |
2- Capital | B-Intangible Assets |
3- Patent/Copyright | C- Expenses |
4- Computer software | D- Tangible Assets |
Answer
1-C, 2-A, 3 & 4-B
Question. Match items in List I with terms in List II using the codes given below the lists
List –I | List –II |
1- Investment | A- Loss |
2- Bad debts | B- Income |
C- Assets |
Answer
1-C, 2-A
Question. Match items in List I with terms in List II using the codes given below the lists
List –I | List –II |
1-Furniture | A- Credit balance |
2- Capital | B- Debit balance |
3-Bank overdraft | |
4- Loss on sale of fixed assets |
Answer
1& 4-A, 2& 3-B
Question. Match items in List I with terms in List II using the codes given below the lists
List –I | List –II |
1- Receiver | A- Debit |
2- What goes out | B- Credit |
3- Income | |
4- Giver |
Answer
1-A, 2,3 &4- B
Question. Match items in List I with terms in List II using the codes given below the lists
List –I | List –II |
1- Repayment of bank loan | A- Increase in bank balance |
2-Loan taken from Bank | B- Decrease in stock |
3- Goods loss by theft | C- Decrease in bank balance |
4- Bad debts recovered | D- Increase in cash |
Answer
1- C,2-A, 3-B, 4-D
Question. Match items in List I with terms in List II using the codes given below the lists
List –I | List –II |
1- Profit | A- No change in capital |
2- Loss | B- Added in capital |
C- Subtract in capital |
Answer
1-B,2-C
Question. Match items in List I with terms in List II using the codes given below the lists
List –I | List –II |
1- Representatives personal account | A- Rent receivable |
2- Artificial personal account | B- Mohan Account |
C- Delhi university | |
D- Interest Payable |
Answer
1-B,2-C, 3-A
Question. Match items in List I with terms in List II using the codes given below the lists
List –I | List –II |
1-Personal A/c | A- Goodwill |
2- Real Account | B-Salary |
3- Nominal A/c | C- Ram |
Answer
1-C, 2- A, 3-B
Question. Match items in List I with terms in List II using the codes given below the lists
List –I | List –II |
1- Loss by fire | A- Loss |
2- Rent received | B- Liability |
C- Income |
Answer
1- A, 2- C
Question. Match items in List I with terms in List II using the codes given below the lists
List –I | List –II |
1- Debit the receiver | A- Nominal |
2- Debit what comes in | B- Personal |
C- Real |
Answer
1- B, 2- C
Question. Match items in List I with terms in List II using the codes given below the lists
List –I | List –II |
1- Paid rent | A- Credit |
2- Received Commission | B- Debit |
Answer
1- B, 2- A
Question. Match items in List I with terms in List II using the codes given below the lists
List –I | List –II |
1- Credit the giver | A- Nominal |
2- Credit what goes out | B- Personal |
C- Real |
Answer
1- B, 2- C

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