Free CBSE Accountancy Multiple Choice Questions for Class 11 along with answers Chapter 3: Recording of Transactions 1. Accountancy MCQs for Class 11 chapter-wise with answers are prepared based on the current exam pattern. Students can tackle MCQs with answers to realise their spadework level.

1. The entry which is passed for bringing forward the balances of personal and real accounts as shown in the last year’s balance sheet is called _____.

(a) Closing entry

(b) Journal entry

(c) Opening entry

(d) None of these

Answer: (c) Opening entry

2. Which of the following is a cash transaction?

(a) Sold goods

(b) Sold goods to Mr. R

(c) Sold goods to Mr. S on credit

(d) Sold goods to Mr. T on account

Answer: (a) Sold goods

3. The mathematical expression defining the comparative relationship between assets and liabilities of any person, institution, or business concern is called _____.

(a) Accounting

(b) Accounting equation

(c) Bookkeeping

(d) None of these

Answer: (b) Accounting equation

4. Ledger is a book of _______ in accounting.

(a) All non-cash transactions

(b) Secondary entry

(c) Original entry

(d) All cash transactions

Answer: (b) Secondary entry

5. Which of the following is entered in the cash book?

(a) Only cash transactions

(b) Only credit transactions

(c) Both cash and credit transactions

(d) None of these

Answer: (a) Only cash transactions

6. The process of recording a business transaction in the journal is called ______.

(a) Costing

(b) Posting

(c) Balancing

(d) Journalising

Answer: (d) Journalising

7. The entry which affects the cash and bank column of a triple column in the cash book is known as ______.

(a) Compound entry

(b) Contra entry

(c) Journal entry

(d) None of these

Answer: (b) Contra entry

8. Which of the following is correct?

(a) Profit / Loss = Closing Capital + Additional Capital – Drawings – Opening Capital

(b) Profit / Loss = Closing Capital – Drawings – Additional Capital – Opening Capital

(c) Profit / Loss = Opening Capital + Drawings Made – Additional Capital – Closing Capital

(d) Profit / Loss = Closing Capital + Drawings Made – Additional Capital – Closing Capital

Answer: (d) Profit / Loss = Closing Capital + Drawings Made – Additional Capital – Closing Capital

9. The cash book meant for recording petty expenses is called _______.

(a) Simple cash book

(b) Petty cash book

(c) Triple column

(d) None of these

Answer: (b) Petty cash book

10. The balance of the goods’ account is transferred to _____.

(a) Profit and loss account

(b) Trading account

(c) Balance sheet

(d) None of these

Answer: (b) Trading Account

11. Liabilities and assets amount to Rs. 50,000 and Rs. 7,800 respectively. The difference Amount shall represent _______.

(a) Creditors

(b) Debentures

(c) Profit

(d) Capital

Answer: (d) Capital

12. A cash book always shows a _______.

(a) Debit balance

(b) Credit balance

(c) Debit or credit balance

(d) None of these

Answer: (a) Debit balance

13. What statement is used while closing a Drawing Account _____.

(a) Balance C/d

(b) By trading A/c

(c) By profit and loss A/c

(d) By capital account

Answer: (d) By capital account

14. How many columns are there in a Ledger (on one side) ______.

(a) Six

(b) Four

(c) Five

(d) Seven

Answer: (b) Four

15. Which Account is opened first in the ledger book ______.

(a) Personal

(b) Real

(c) Non–real

(d) None of these

Answer: (a) Personal

We trust that the offered Accountancy MCQs for Class 11 with responses Chapter 3: Recording of Transaction 1 will help you. Assuming you have any questions with respect to CBSE Class 11 Accountancy, Recording of Transactions 1 MCQs, drop a remark underneath, and we will hit you up at the most punctual.

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