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1.	Recording of transaction in the Journal is called:A. CastingB. PostingC. JournalisingD. Recording
Answer» Correct Answer - iii

2.	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.
Answer» Correct Answer - d

3.	Total of the debit side of cash book is ………..than the credit side.
Answer» Correct Answer - more

4.	Credit balance shown by a bank column in cash book is …………
Answer» Correct Answer - overdraft

5.	Cash book is a ………… journal.
Answer» Correct Answer - subsidiary

6.	In Journal proper, only…………discount is recorded.
Answer» Correct Answer - cash

7.	Prepare accounting equation from the following: (a) Kunal started business with cash 2,50000 (b) He purchased furniture for cash 35,000 (c) He paid c (d) He purchases goods on credit 40,000 (e) He sold goods (Costing 20,000) for cash 26,000
Answer» Asset = Cash 2,39,000 + Furniture 35,000 + Goods 20,000 = 2,94,000, Liabilities = Creditors 40,000 + Capital 2,54,000= 2,94,000

8.	Rohit has the following transactions : (a) Commenced business with cash 1,50,000 (b) Purchased machinery on credit 40,000 (c) Purchased goods for cash 20,000 (d) Purchased car for personal use 80,000 (e) Paid to creditors in full settlement 38,000 (f) Sold goods for cash costing 5,000 4,500 (g) Paid rent 1,000 (h) Commission received in advance 2,000 Prepare the Accounting Equation to show the effect of the above transactions on the assets, liabilities and capital.
Answer» Assets = Cash 17,500 + Machine 40,000 + Goods 15,000 72,500, Liabilities = Commission 2,000 + Capital 70,500= 72,500

9.	Prepare accounting equation on the basis of the following : (a) Harsha started business with cash 2,00,000m (b) Purchased goods from Naman for cash 40,000 (c) Sold goods to Bhanu costing 10,000/- 12,000 (d) Bought furniture on credit 7,000A. Harsha started business with cash 2,00,000B. Purchased goods from Naman for cash 40000C. Sold goods to Bhanu costing 10,000/-12000D. Bought furniture on credit 7000
Answer» Asset = cash 1,60,000 + Goods 30,000 + Debtors 12,000 +Furniture7,000 = 2,09,000, Liabilities = Creditors 7,000 + Capital 2,02,000 = 2,09,000

10.	Mohit has the following transactions, prepare accounting equation: (a) Business started with cash 1,75,000 (b) Purchased goods from Rohit 50,000 (c) Sales goods on credit to Manish (Costing 17,500 20,000) (d) Purchased furniture for office use 10,000 (e) Cash paid to Rohit in full settlement 48,500 (f) Cash received from Manish 20,000 (g) Rent paid 1,000 (h) Cash withdrew for personal use 3,000
Answer» Cash 1,32,500 + Goods 32,500 + Furniture 10,000 1,75,000, Liabilition = Capital 1,75,000

11.	Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation: (a) Started business with cash 1,20,000 (b) Rent received 10,000 (c) Invested in share 50,000 (d) Received dividend 5,000 (e) Purchase goods on credit from Ragani 35,000 (f) Paid cash for house hold Expenses 7,000 (g) Sold goods for cash (costing 10,000) 14,000 (h) Cash paid to Ragani 35,000 (i) Deposited into bank 20,000
Answer» Assets = Cash 37,000 + Shares 50,000 + Goods 25,000 + Bank 20,000 = 1,32,000, Liabilities = Capital 1,32,000

12.	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 the ledger account.D. Record the page number of the ledger account.
Answer» Correct Answer - d

13.	The journal entry to record the sale of services on credit should include:A. Debit to debtors and credit to capitalB. Debit to cash and Credit to debtorsC. Debit to fees income and Credit to debtors.D. Debit to debtors and Credit to fees income.
Answer» Correct Answer - d

14.	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 and Credit cash 2,00,000 and creditors 8,00,000.C. Debit equipment 2,00,000 and Credit debtors 8,00,000D. Debit equipment 10,00,000 and Credit cash 10,00,000.
Answer» Correct Answer - b