MCQs for Accountancy Class 11 Chapter 3 with Answers and Explanations
MCQs for Accountancy Class 11 Chapter 3 focus on "Recording of Transactions"—an essential foundation for understanding journals, ledgers, cash books, and subsidiary books. This chapter is important for school exams, commerce entrance tests, and practical business knowledge. Practicing these MCQs helps students strengthen their concepts and perform better in assessments.
| Core Area | Description | Example MCQ Topics |
|---|---|---|
| Journal Entries | First step in recording transactions in accounting books. | Identifying correct debit and credit side. |
| Cash Book | Records all cash and bank transactions. | Types of cash books—single, double, triple columns. |
| Ledger | Posting and balancing of all accounts. | Personal, real, and nominal accounts in ledger. |
| Subsidiary Books | Special journals for repetitive transactions. | Purchase day book, sales book, petty cash book. |
| Accounting Equation | Basic relationship: Assets = Liabilities + Capital. | Impact of transactions on equation. |
MCQs for Accountancy Class 11 Chapter 3 with Answers
Practicing MCQs from Accountancy Class 11 Chapter 3 helps reinforce the fundamentals of recording transactions. These questions include journal entries, cash book details, subsidiary books, and the accounting equation—frequently tested in CBSE and other board exams.
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The process of recording a business transaction in the journal is called:
(a) Costing (b) Posting (c) Balancing (d) Journalising
Answer: (d) Journalising — It records transactions in chronological order for the first time. -
Which entry brings forward balances of personal and real accounts from last year’s balance sheet?
(a) Closing entry (b) Journal entry (c) Opening entry (d) None of these
Answer: (c) Opening entry — It is passed at the start of a new accounting period. -
A transaction recorded on both sides of the cash book simultaneously is called:
(a) Contra entry (b) Dual entry (c) Double entry (d) Single entry
Answer: (a) Contra entry — E.g., cash withdrawn from bank for office use. -
The mathematical relationship defining assets and liabilities is called:
(a) Accounting (b) Accounting equation (c) Bookkeeping (d) None of these
Answer: (b) Accounting equation — It shows Assets = Liabilities + Capital. -
Which book is known as the book of original entry?
(a) Ledger (b) Journal (c) Trial Balance (d) Balance Sheet
Answer: (b) Journal — Transactions are first entered here. -
The cash book meant for recording petty expenses is called:
(a) Simple cash book (b) Petty cash book (c) Triple column cash book (d) Journal
Answer: (b) Petty cash book — Maintained for minor expenses using the imprest system. -
What does the ledger record?
(a) All non-cash transactions (b) Secondary entry (c) Original entry (d) All accounts
Answer: (d) All accounts — It contains the balances of every account. -
Which of the following is correct?
(a) Liabilities = Assets + Capital (b) Assets = Liabilities – Capital
(c) Capital = Assets – Liabilities (d) Capital = Assets + Liabilities
Answer: (c) Capital = Assets – Liabilities — Rearranged basic accounting equation. -
Which book records all cash and bank-related transactions?
(a) Ledger (b) Journal (c) Cash book (d) Purchase book
Answer: (c) Cash book — Also serves as both journal and ledger for cash and bank transactions. -
How many columns are there in a ledger (one side)?
(a) Six (b) Four (c) Five (d) Seven
Answer: (c) Five — Typically Date, Particulars, Journal Folio, Debit, Credit.
Key Concepts in Recording of Transactions
Chapter 3 covers several important concepts students must understand to answer MCQs accurately. These basics are crucial for higher-level accounting and questions seen in exams.
Essential Concepts
- Journal and journalising—recording transactions using accounting rules.
- Cash book—types, format, and entries.
- Ledger—posting and balancing of accounts.
- Difference between journal and ledger. (See: Difference Between Journal and Ledger)
- Personal, real, and nominal accounts—classification and rules.
- Subsidiary books—importance and examples. (Explore: Introduction to Subsidiary Books)
- Accounting equation—how each transaction impacts assets, liabilities, capital. (Accounting Equation)
Tips for Practising Accountancy MCQs: Chapter 3
Follow these strategies to master MCQs on "Recording of Transactions":
- Read each question carefully—identify keywords like cash, credit, contra, journal, and ledger.
- Practice MCQs on mobile for fast revision using Vedantu and trusted apps.
- After solving, review explanations to clarify doubts.
- Use online practice tests and downloadable PDFs for repeated revision.
- Compare with chapter-wise solutions: TS Grewal Solutions Class 11 Accountancy Chapter 3, DK Goel Solutions Chapter 3.
Common Errors and Clarifications in Recording of Transactions MCQs
Students often confuse journal and ledger, or proper usage of the cash book. Always:
- Check whether the transaction impacts cash or credit.
- Remember: Journal is for the first entry; ledger is for account summary.
- Contra entries affect both cash and bank columns in cash book—never journal.
- The accounting equation must always remain balanced after every transaction.
To deepen understanding, refer to: Types of Accounts and Cash Book Examples.
Accessing More Practice and Resources
Students can find more MCQs for Accountancy Class 11 Chapter 3 by:
- Practicing online tests at Vedantu and similar platforms.
- Downloading chapter-wise MCQ PDFs for offline revision.
- Using reference books such as TS Grewal, DK Goel, and Sandeep Garg.
- Bookmarking important sections and explanations for quick mobile revision.
For more visuals and examples on key topics, visit: Ledger Accounts and Accounting Equation.
In summary, MCQs for Accountancy Class 11 Chapter 3 give you strong practice in recording transactions, journal and cash book entries, and balancing the accounting equation. Repeated revision and clarity on types of accounts help boost exam scores. At Vedantu, our resources make these concepts simple and accessible for learners preparing for board exams and beyond.
FAQs on Accountancy Class 11 Chapter 3: MCQs on Recording of Transactions
1. Where can I download MCQs for Accountancy Class 11 Chapter 3 with answers?
Many websites and resources offer MCQs for Accountancy Class 11 Chapter 3 with answers. You can often find them as PDFs or online quizzes. Look for reputable educational sites or those aligned with the CBSE syllabus for accuracy. These MCQs typically cover topics like recording of transactions, journal entries, and the cash book.
2. What important topics should I focus on for Chapter 3 Accountancy MCQs?
Chapter 3, "Recording of Transactions," in Class 11 Accountancy focuses on fundamental accounting concepts. Key areas for MCQs include:
•Journal entries: Understanding debit and credit rules, and preparing various types of entries.
•Cash book: Preparation and understanding of cash book entries, including contra entries.
•Accounting equation: Applying the equation (Assets = Liabilities + Capital) to solve problems related to transactions.
•Subsidiary books: Understanding their role and how transactions are recorded in them before the general ledger.
3. Are there online tests for Class 11 Accountancy Chapter 3 MCQ practice?
Yes, many educational websites offer online tests for Class 11 Accountancy Chapter 3 MCQs. These tests provide instant feedback, helping you identify your strengths and weaknesses. Look for online platforms that use an exam-style format and provide explanations for each answer. This will improve your understanding and help you avoid common mistakes during exams.
4. What is a contra entry in the cash book?
A contra entry in a cash book is a transaction where both receipts and payments occur simultaneously. For example, if you receive payment from a customer but also pay for some office supplies on the same day, both the receipt and payment would be recorded on the same day in the cash book, one as debit and other as credit and are offset against each other. This is often tested in MCQs on cash book concepts.
5. How does the accounting equation apply in Chapter 3 MCQs?
The accounting equation (Assets = Liabilities + Capital) is fundamental to understanding Chapter 3. MCQs will often test your ability to apply this equation to analyze the impact of transactions on a business's financial position. For example, an MCQ might ask you how a particular journal entry affects the equation.
6. Where can I get the Class 11 Accountancy MCQ PDF for free?
Free Class 11 Accountancy MCQ PDFs can be found on various educational websites and online resources. However, ensure the source is credible and its content aligned with the CBSE syllabus. Always verify the accuracy of the answers provided.
7. What is the importance of MCQs in Accountancy?
MCQs are a crucial part of Accountancy exam preparation. They help you:
• Test your understanding of key concepts quickly.
• Identify areas where you need more revision.
• Practice applying accounting principles to various scenarios.
• Improve your test-taking speed and accuracy.
8. How to study Accountancy Class 11 Chapter 3?
To effectively study Accountancy Class 11 Chapter 3, focus on understanding the underlying principles of recording transactions. Practice preparing journal entries, maintaining a cash book, and applying the accounting equation. Use a combination of textbooks, notes, and MCQs for comprehensive learning.
9. What topics are in Chapter 3 Accountancy Class 11?
Chapter 3 of Class 11 Accountancy typically covers recording of transactions. This includes learning about different types of accounts, preparing journal entries, maintaining a cash book, understanding the accounting equation, and the use of subsidiary books. It lays the foundation for more advanced accounting topics.
10. Why do many students confuse journal entries and ledger postings in MCQs?
Confusion between journal entries and ledger postings often arises because both involve recording transactions. However, a journal is a chronological record of transactions, while a ledger is a summary of all transactions related to a specific account. Understanding this difference is essential for accurately answering MCQs.
