MCQ Questions Chapter 3 Recording of Transactions – I Class 11 Accountancy

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

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 

Question. Rent paid is a-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/c

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 

Question. Purchase Account is a-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative personal A/c

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

Question. Outstanding expenses account is a-
(a) Real A/c
(b) Tangible A/c
(c) Nominal A/c
(d) Representative Personal A/c

Question. Identify Asset in the following:-
(a) Building
(b) Rent Paid
(c) Sales
(d) Capital

Question. Rent received is –
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/c

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

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

Question. Identify expense in the following:-
(a) Building
(b) Rent Paid
(c) Sales
(d) Capital

Question. Income Account is a-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative personal A/c

Question. Capital increased when:-
(a) Goods Purchased
(b) Rent paid
(c) Commission received
(d) Goods loss by fire

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.

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

Question. Capital decreased when:-
(a) Goods sold at a loss
(b) Rent received
(c) Goods purchased
(d) Machinery purchased

Question. Drawing Account is a-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/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

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

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

Question. Assets Account is a-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative personal A/c

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

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 

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

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 

Question. Ram a debtor is-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/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

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

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

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

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 

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

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

Question. Capital Account is –
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/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

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

Question. Rahul a Creditor is-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/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 

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

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 

Question. Voucher is kept for evidence according to which concept:
(a) Cost concept
(b) Matching concept
(c) Revenue concept
(d) Objectivity concept

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 

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

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

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

Question. Which concept is followed for preparing vouchers?
(a) Entity concept
(b) Cost concept
(c) Accrual concept
(d) Objectivity concept

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.

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 

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.

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

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

Question. Bank Account is a-
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Representative Personal A/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 

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 

Question. Basic accounting equation is-
(a) Assets= Capital+liabilities
(b) Liabilities= Assets+Capital
(c) Capital=liabilities +assets
(d) Asset=liabilities-capital

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 

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

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.

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

Question. Voucher relates to:
(a) Cash receipt
(b) Cash payment
(c) Credit transaction
(d) All of the above

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.

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 

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.

Fill In The Blanks

Question. Withdrawal of Money from bank for personal use ———– account will be debited, ———- account will be credited.

Question. If capital is Rs 1,00,000 and outside liability Rs 2,50,000 then total assets Rs ———-.

Question. Assets= Capital+————–.

Question. Cycle purchased by proprietor for his daughter of Rs 9,000 out of business cash, then ———–will be debited.

Question. Paid life insurance premium of proprietor of Rs 12,000, then ———— will be debited. 

Question. Increase in assets will be ————–and decrease in assets will be ———–, if modern approach is followed.

Question. Increase in expenses will be ————–and decrease in expenses will be ———–, if modern approach is followed.

Question.Increase in income will be ————–if modern approach is followed.

Question. Increase in liability will be ————–and decrease in liability will be ———–, if modern approach is followed.

Question. Increase in capital will be ————–, if modern approach is followed.

Question. Written evidences which become basis of recording business transactions is ___________. 

Question. Account is having ————–shape.

Question. Salary paid of Rs 20,000 from saving bank Account, ————account will be debited and ———–account will be credited.

Question. Cash received from Debtors 19,800 against full settlement of Rs 20,000, then 200 will be debited to———-account.

Question. If cash is received Rs 2,00,000 from Akshat, Akshat account will be———. 

Question. Vouchers are prepared on the basis of ______________ .

Question. If total assets is Rs 1,30,000 and liabilities are Rs 50,000 then Net worth————–. 

Question. Discount allowed is a ———– type of account as per traditional approach. 

Question. Horses purchased for business purpose will be debited to ——— account. 

Question. Delhi University is ——— ——–type of 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 ———-.

True/ False

Question. A trader purchased 10 chairs @ Rs 500 each, the transfer voucher which is prepared will show Rs 5,000.

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 .

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.

Question. Interest earns but not received for of Rs 1000 during the year ended will Increase in cash and increase in rent.

Question. Sales Price of goods deduct from stock at the time of goods sold

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.

Question. Decrease in stock due to goods distributed as free sample

Question. Wages paid for installation Of Machinery is not cost of Machinery.

Question. Nominal Account includes all Tangible Asset.

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. 

Question. Sales Account Debited for Goods given away as charity.

Question. Decrease in liabilities due to payment to creditors.

Question. Raghav, a proprietor purchased Computer for business in Cash. The accounting vouchers prepared for recording will be Transfer Voucher.

Question. The accounting voucher prepared to record depreciation on Machinery is Credit Voucher.

Question. Transactions are recorded in books of original entry on the basis of voucher and not on the basis of source documents.

Question. All credit transactions are recorded in the books on the basis of Transfer vouchers. 

Question. Credit Vouchers are prepared to record cash payments.

Question. Credit voucher is prepared to record Cash purchases.

Question. An amount of Rs 500 was embezzled by an employee will be recorded on the basis of Debit voucher.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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