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Chapters – 3
Analysis of Business Transactions & Double Entry System
Encircle the most appropriate answer from the following four answers.
1 The best system of accounting in the modern world is:
- No entry system
- Multiple entry system
- Single entry system
- Double entry system
2 Discount allowed is:
- An asset
- A liability
- A Revenue
- An expense
3Accounts which keep records of properties or things are
- Nominal accounts
- Personal accounts
- Real accounts
- None of these
4 Accounts which keep records of expenses, gains and losses are called;
- Personal accounts
- Nominal accounts
- Real accounts
- None Of these
5 Purchase of furniture should be debited to:
- Cash account .
- Furniture account
- Purchase. account
- Creditors account
6 Rent salaries and wages paid are:
- Nominal accounts
- Real accounts
- Personal accounts
- None Of these
7 The claim of the supplier in the business is called:
- Expense
- Revenue
- Liability
- Assets
8 Ahmed’s account is an example of:
- Personal account
- Nominal account
- Real account
- None of these
9 How many categories of accounts are:
- Five
- Four
- Three
- Two
10 Goods purchased for cash from Babar should be debited to:
- Goods account
- Cash account
- Babar account
- Purchases account
11 Stationery account is an example of;
- Loss
- Consumable asset
- None of these
- expenses
12 Discount received from Ali should be debited to:
- Cash account
- Discount received account
- Ali account
- None Of these
13 Cash invested in business by Owner will increase
- cash
- Capital
- Liability
- Both 1 and 2
14 Discount allowed to Mr A Will be credited to:
- Cash account
- Mr A’s Account.
- None of these
- Discount allowed account
15 Cash and personal accounts maintained in
- None of these
- Single entry system
- Double entry system
- Multiple entry system
16. Real and Nominal accounts are maintained under:
- Triple entry system
- Single entry system
- Double entry system
- .Multiple entry system
17 Rent paid to the landlord for a portion of b “ld (d) Multiple “my system
- Building account
- Landlord account
- Rent account
- Cash account
18 Purchased goods on credit increases the:
- Debtors
- Customers
- Creditors
- None of these
19, Purchased furniture on account will be credited to:
- Furniture account
- Creditor account
- Purchased account
- Cash account
20, All expenses and losses should be debited and all gains should be credited“ is applied to:
- Real Accounts
- Nominal Accounts
- Personal Accounts
- None of these
21. Assets coming in should be debited and going out should be credited is applied to:
- Personal Accounts
- Real Accounts
- Nominal Accounts ‘
- 1 and 2 Accounts
22 A person who receives the benefit should be debited and who gives the benefit should be credited is applied to:
- Personal Accounts
- Real Accounts
- Nominal Accounts
- 1 and 2 account
23 debit the increase
- Assets, Revenue
- Assets, Expenses
- Assets, Liabilities
- Assets, Capital
24 Credit the increase in
- Expenses, Capital and Liabilities
- Assets, Expenses
- Revenue, Capital and Liability
- Assets, Capital andLiabilities
25. Debit the decrease in:
- Revenue, Capital and Liabilities
- Expenses, Capital and Liabilities,
- c) Assets. Capital and Liabilities
- Assets. Expenses
Credit the decrease in:
- Revenue and Liabilities
- Asset and Expenses\
- Expenses and Liabilities
- Assets and Liabilities
27. Sold merchandise on Credit to Ali Rs.7000 involves
- Real and Real accounts ,
- Nominal and Personal accounts
- Nominal and Real accounts
- Real and Personal accounts;
28- Invested Rs.2. 00.000 Cash, Building Rs.7500 furniture rs 25000
- Real and Nominal accounts
- Real and Personal accounts .
- Personal and Nominal accounts
- Real accounts
29. Purchased Goods for Cash Rs.50000 subject to 10% trade discount involves:
- Real and Personal accounts
- Real and Nominal accounts
- Personal and Nominal accounts
- Nominal accounts
30. Withdrew Cash for personal use Rs.300 involves: , – ,_
- Real and Proprietorship account
- Proprietorship and Personal account
- nominal account and real account
- Nominal and Personal accounts
31. Discount received is a:
- Revenue
- Liability
- Expense
- Asset
32. A summary of transactions relating to a person or thing: ,
- Book-keeping
- Accountancy
- Accounting
- Accoun
Chapter -4
Journal :The original book of entry
Encircle the most appropriate answer from the following :
1. Journal is the book of:
- Original entry
- Preliminary entry
- First entry
- All of above
2. The entry in which more than one account is debited or credited is called
- Simple entry
- Single entry
- Compound entry
- Prime entry
3. The art of recording transaction in a journal is:
- ledger entry
- Posting
- Journalising
- Compound entry
4. Recording a transaction in the appropriate place of the concerned book of account is called
- statement
- Business document
- An entry
- None of these
5. A short explanation is written under each entry is called
- Posting
- Recording
- Narration
- Summarizing
6. The money with which proprietor starts his business is called
- Cash
- Capital
- Investment
- Aid
7. Goods purchase on credit from Tariq should be debited to
- Tariq account
- Cash account
- Purchases account
- Goods account
8. Purchased a motorcycle by the proprietor for his personal use should be debited:
- Purchases account
- Proprietor’s Personal account
- Motorcycle account
- Drawings account
9. Goods sold on account to Rahar should be credited to
- rahar account
- Sales account
- Goods account
- Purchase account
10. Goods return to Ahmed should be debited to:
- Sales return account
- Purchases return account
- Ahmed account
- Purchases account
11. Goods returned by Zain should be debited to
- Purchase return account
- Sales return account
- Zain account
- Purchases account
12. When goods are given away as charity should be credited to
- Charity account
- Drawings account
- Free sample account
- Purchases account
13. Discount received from Ali should be debited to
- Discount received account
- Ali account
- Discount account
- Discount allowed
14. Salaries paid to Zubair should be debited to
- Salaries account
- Zubair account
- Cash account
- Bank account
15. A table lost by fire should be debited:
- Table account
- Loss by fire account
- Furniture account
- Purchases account
16. Gave away Charity in the form of goods should be debited to:
- Purchase account
- Expense account
- Cash account
- Charity Account
17. Credit signifies
- Increase in liability
- Increase in Capital
- Increase in revenue
- All of above
18. Purchase furniture from Saleem furnitures at list price of Rs.500 subject to 5% trade discount should be debited to:
- Purchase account
- Furniture,trade discount
- Furniture account
- Purchase, trade discount
19. Purchased office typewriter from Muzammal should be credited to:
- purchase account
- Muzammal account
- Office equipment account
- Cash account
20. Sales of goods to X for cashshould be debited to:
- Sales account
- X account
- Cash account
- None of these
21. Payment of Rs 50 to Rahim as wages for repairing furniture should be debited to:
- Furniture account
- Wages account
- Repair account
- Rahim account
22. Debit signifies
- Increase in asset account
- Decrease in liability account
- Decrease in capital account
- All of the above
23. Goods taken for personal use should be:
- Sale account
- Purchases account
- Drawings account
- Cash account.
24. A business transaction affects
- Maximum two account
- Maximum three account
- At least one account
- At least two accounts