Competitive MCQs (Commerce): Journal & Ledger-I

Q. 1. Primary recording is to be done in

A.	Journal		C.	Trial Balance
B.	Ledger		D.	Cash Book

 
Q. 2. Final recording is to be done in

A.	Journal		C.	Trial Balance
B.	Ledger		D.	Cash Book

 
Q. 3. …………………… is called ‘book of first entry’.

A.	Journal		C.	Trial Balance
B.	Ledger		D.	Subsidiary Book

 
Q. 4. …………………….. is called ‘king of books of accounts’.

A.	Journal		C.	Cash Book
B.	Ledger		D.	Trial Balance

 
Q. 5. Making entries from journal to ledger is called

A.	Journal		C.	Posting
B.	Ledger		D.	Entry

 
Q. 6. Recording in the journal is called

A.	Journal		C.	Entry
B.	Ledger		D.	Posting

 
Q. 7. In which book the transactions are recorded for the first time from the source documents?

A.	Journal		C.	Cash Book
B.	Ledger		D.	Purchase Book

 
Q. 8. Which accounts are related to individual firm, companies etc.?

A.	Real		C.	Nominal
B.	Personal		D.	Capital

 
Q. 9. Personal accounts are related to

A.	Assets		C.	Debtors and Creditors
B.	Liabilities		D.	Income

 
Q. 10. Real accounts are related to

A.	Assets		C.	Income
B.	Liabilities		D.	Expenses

 
Q. 11. Which accounts are related to assets?

A.	Real		C.	Nominal
B.	Personal		D.	Cash

 
Q. 12. Which accounts are related to nominal accounts?

A.	Assets Account		C.	Income Account and Expenses & Losses Account
B.	Liabilities Account		D.	Debtors and Creditors Account

 
Q. 13. Nominal accounts are related to

A.	Assets		C.	Liabilities
B.	Expenses, Losses and Incomes		D.	Debtors, Creditors etc.

 
Q. 14. From which book trial balance is prepared?

A.	Journal		C.	Cash Book
B.	Ledger		D.	Subsidiary Book

 
Q. 15. From the balances of which accounts net profit or net loss can be ascertained?

A.	Real Account		C.	Personal Account
B.	Nominal Account		D.	Cash Account

 
Q. 16. Classification and condensation are to be done in

A.	Journal		C.	Trail Balance
B.	Ledger		D.	Balance Sheet

 
Q. 17. Sales of goods to Sanjay for cash should be debited to

A.	Sales Account		C.	Cash Account
B.	Sanjay Account		D.	Creditors Account

 
Q. 18. Loss of goods by fire should be credited to

A.	Capital Account		C.	Loss of goods by fire Account
B.	Purchases Account		D.	Drawings Account

 
Q. 19. Premium paid on life insurance policy of the proprietor will be debited to

A.	Capital Account		C.	Premium Account
B.	Drawings Account		D.	Bank Account

 
Q. 20. In which account outstanding salary will be debited?

A.	Outstanding Salary Account		C.	Debtors Account
B.	Salary Account		D.	Creditors Account

 
Q. 21. In which account prepaid insurance will be credited?

A.	Insurance Account		C.	Debtors Account
B.	Prepaid Insurance Account		D.	Creditors Account

 
Q. 22. In which account a furniture dealer will debit for purchase of furniture?

A.	Furniture Account		C.	Creditor Account
B.	Purchases Account		D.	Cash Account

 
Q. 23. Payment of wages to workmen for installation of machinery should be debited to

A.	Wages Account		C.	Machinery Account
B.	Cash Account		D.	Repairs to Machinery Account

 
Q. 24. Rs. 5,000 received from Sagar whose account was written off as bad in the previous year should be credited to

A.	Sagar Account		C.	Cash Account
B.	Bad Debt Account		D.	Bad Debt Recovery Account

 
Q. 25. In which account excess of liabilities over assets in the opening entry will be debited?

A.	Capital Reserve Account		C.	Goodwill Account
B.	Asset Account		D.	Liabilities Account

 
Q. 26. If goods sold of the list price Rs. 20,000 to Raj with 10% trade discount; what amount will be shown in sales account?

A.	Rs. 20,000		C.	Rs. 18,000
B.	Rs. 19,000		D.	Rs. 22,000

 
Q. 27. If goods sold to Bose costing Rs. 5,000 at 40% above cost less 10% trade discount; what amount will be credited to sales account?

A.	Rs. 2,000		C.	Rs. 6,000
B.	Rs. 5,200		D.	Rs. 6,300

 
Q. 28. If Raju purchased goods for Rs. 12,000 and sold 1/5^th of the goods at a profit of 25% on sale price; what amount will be credited to sales account?

A.	Rs. 2,400		C.	Rs. 3,200
B.	Rs. 3,000		D.	Rs. 6,000

 
Q. 29. If bought goods from Sujoy Rs. 25,000, paid cash Rs. 5,000, returned goods to Sujoy Rs. 2,000 and paid by cheque Rs. 13,000; what will be the balance of Sujoy account?

A.	Rs. 8,000		C.	Rs. 5,000
B.	Rs. 7,000		D.	Rs. 3,000

 
Q. 30. Rajesh commenced business with cash Rs. 22,000, bought furniture Rs. 2,000, bought goods Rs. 8,000, sold goods for Rs. 12,000, paid creditors Rs. 7,000; what will be the balance of Rajesh’s capital account?

A.	Rs. 8,000		C.	Rs. 17,000
B.	Rs. 12,000		D.	Rs. 22,000

 
 Answer: 

1.	A	2.	B	3.	A	4.	B	5.	C
6.	C	7.	A	8.	B	9.	C	10.	A
11.	A	12.	C	13.	B	14.	B	15.	B
16.	B	17.	C	18.	B	19.	B	20.	B
21.	A	22.	B	23.	C	24.	D	25.	C
26.	C	27.	D	28.	C	29.	C	30.	C