Important MCQs on Subsidiary Books, Cash Book & Journal Entries
MCQs for Accountancy Class 11 Chapter 4, titled "Recording of Transactions 2," are designed to boost your conceptual clarity and exam readiness. This topic is vital for Commerce students, covering practical aspects like subsidiary books, cash books, and journal entries. Practicing these MCQs prepares you for CBSE exams, competitive assessments, and real-world business activities.
| Book of Entry | Transactions Recorded | Example |
|---|---|---|
| Journal Proper | Opening entries, Adjustments, Assets bought on credit | Credit purchase of furniture |
| Cash Book | All cash and bank transactions | Goods purchased with cash |
| Purchase Book | Goods purchased on credit | Credit purchase of stock-in-trade |
| Sales Book | Goods sold on credit | Credit sales to customers |
| Subsidiary Books | Day-to-day specialized entries | Sales return, purchase return, etc. |
MCQs for Accountancy Class 11 Chapter 4 with Answers
Practicing MCQs for Accountancy Class 11 Chapter 4 helps students reinforce core concepts in transaction recording, reduce mistakes in exams, and improve time management. These questions cover subsidiary books, journal entries, and cash book handling—key focus areas for CBSE Board and school-level tests.
- Return of goods by a customer is recorded in:
(a) Purchase book
(b) Sales book
(c) Sales return book
(d) Purchase return book
Answer: (c) Sales return book — Sales returns are always recorded in the sales return book. - Balancing of accounts means:
(a) Total of debit side
(b) Total of credit side
(c) Difference in total of debit and credit side
(d) None of the above
Answer: (c) Difference in total of debit and credit side — Balancing is the difference between two sides. - A cheque with two parallel lines in the left top corner is called:
(a) Bearer cheque
(b) Traveller’s cheque
(c) Account payee cheque
(d) None of these
Answer: (c) Account payee cheque — Crossed cheques are marked for account payee only. - Credit balance of the bank account in the cash book shows:
(a) Cash deposited into our bank
(b) Overdraft
(c) Cash is withdrawn from the bank
(d) None of the above
Answer: (b) Overdraft — Credit balance in the bank column indicates overdraft facility. - Cash book does not record the transactions of:
(a) Cash nature
(b) Credit nature
(c) Cash and credit nature
(d) None of these
Answer: (b) Credit nature — Credit transactions are not recorded in the cash book.
Key Subtopics in Recording of Transactions 2
Chapter 4 dives deep into recording different kinds of business transactions. It explains the types of subsidiary books, rules of journal entries, and cash book management. Mastering these ensures accuracy in preparing financial statements and reduces errors—crucial for school and board exams.
Importance of Subsidiary Books
Subsidiary books help classify transactions for easy recording and summarizing. Examples include Purchase Book, Sales Book, and Petty Cash Book. They simplify bookkeeping and help prevent mistakes during posting.
Types of Cash Books
- Single Column Cash Book – Only cash transactions
- Double Column Cash Book – Cash and bank columns
- Triple Column Cash Book – Cash, bank, and discount columns
Learn more about cash books at Cash Book.
Journal Entries and Journal Proper
Special transactions, such as credit purchase of assets and opening entries, are recorded in the journal proper. Mastering journal entries helps with accurate ledger posting and prevents errors.
Common Mistakes to Avoid in Accountancy MCQs
- Confusing which book records cash versus credit transactions
- Mixing up sales return book and purchase return book
- Incorrectly identifying the type of account (personal, real, nominal)
- Ignoring special columns in cash books while posting entries
- Overlooking the proper treatment of dishonoured cheques or petty cash reimbursements
Practice Resources and Further Study
Boost your score by downloading MCQ practice PDFs and taking online tests. For detailed explanations, Vedantu offers stepwise guides and video lessons. Explore these for advanced clarity:
- TS Grewal Solutions Class 11 Accountancy Chapter 4
- DK Goel Solutions Class 11 Accountancy Chapter 4
- Ledger Accounts
- Types of Errors
- Difference between Journal and Ledger
How MCQs Help in Board & Competitive Exams
MCQs train you for quick reasoning and accuracy. They help spot conceptual gaps before exams and are part of school tests, entrance exams, and commerce olympiads. Regular MCQ practice, combined with Vedantu’s expert support, ensures better results in accountancy and competitive commerce careers.
Summary
MCQs for Accountancy Class 11 Chapter 4 cover key topics in subsidiary books, cash books, and journal entries. Regular practice sharpens your concepts, boosts exam confidence, and reduces errors. Use Vedantu’s notes, internal links, and practice resources to master transaction recording and excel in exams and business scenarios.
FAQs on MCQs for Accountancy Class 11 Chapter 4: Recording of Transactions 2
1. What topics are covered in MCQs for Accountancy Class 11 Chapter 4?
MCQs for Accountancy Class 11 Chapter 4, titled "Recording of Transactions 2," cover key concepts in subsidiary books, cash books (including single, double, and triple column variations), and journal entries. These MCQs test your understanding of transaction recording methods and help you prepare for CBSE exams. Expect questions on journal and cash book differences, sales return book entries, and practical examples like cash purchase entry.
2. Where can I download the MCQs for Class 11 Accountancy Chapter 4 in PDF format?
A downloadable PDF containing MCQs for Class 11 Accountancy Chapter 4 is typically offered on educational websites. Look for a download button or link usually provided near the end of the MCQ section. Check for options to download the questions with answers and detailed explanations. Ensure the source provides materials aligned with the CBSE syllabus.
3. How can I practice online MCQ tests for Chapter 4?
Many educational platforms provide online MCQ tests for Class 11 Accountancy Chapter 4. These tests often offer immediate feedback, helping you identify strengths and weaknesses. Search online for "Class 11 accountancy online test practice" or "online test for class 11 accountancy MCQs." Look for platforms that provide MCQ quiz with explanation and are aligned with CBSE standards.
4. Are the solutions and answer keys provided for each MCQ?
Reputable sources providing MCQs for Class 11 Accountancy always include answer keys and detailed explanations. This is crucial for learning from mistakes and understanding the underlying accounting principles. Look for resources explicitly stating that MCQs for class 11 accountancy with answers are provided to help you check your answers and learn from your mistakes.
5. What is the importance of 'Recording of Transactions 2' in CBSE Accountancy exams?
"Recording of Transactions 2" (Chapter 4) is a crucial part of the CBSE Accountancy Class 11 syllabus. Mastering the concepts in this chapter—subsidiary books, journal entries, and cash books—is essential for laying a solid foundation in accounting. Strong understanding of this chapter is directly applicable to higher-level accounting topics and critical to success in CBSE exams. This area is frequently tested, so strong knowledge in this area is vital to high performance in your exams.
6. What is recorded in purchase book?
The purchase book is a subsidiary book used to record all credit purchases of goods. It simplifies the process of recording numerous individual credit transactions. Only credit purchases are recorded; cash purchases are entered in a separate book, usually the cash book. Ensure you understand the difference between the two and what entries belong in each book.
7. What is a triple column cash book?
A triple-column cash book is a type of cash book that helps manage cash, bank, and discount transactions all in one place. It facilitates keeping track of all banking activities (deposits, withdrawals) and helps analyse both credit and cash transactions effectively. It provides a clearer picture of the overall cash flow, facilitating easy reconciliation. This method is important for businesses with considerable banking activity.
8. What are journal entries with examples?
Journal entries are the initial recording of financial transactions in a journal. They follow a debit-credit format, ensuring the accounting equation (assets = liabilities + equity) remains balanced. Examples include recording a sale (debit cash, credit sales), purchasing supplies (debit supplies, credit cash or accounts payable), or paying rent (debit rent expense, credit cash). Mastering journal entries is fundamental to accounting.
9. What is the cash book used for?
The cash book is a principal book of accounts used to record all cash and bank transactions. It acts as a primary record for all cash receipts and cash payments. Different types of cash books exist (single, double, and triple column) depending on the complexity of the business's financial activities. It is important to keep a cash book up-to-date and properly reconcile the balances regularly.
10. How are MCQs useful for exams?
MCQs are an effective way to test your understanding of key concepts in a short amount of time. They help identify knowledge gaps and areas requiring further revision. Practice MCQs regularly can improve your exam performance by familiarizing you with exam format and question types; they also greatly improve your time management skills under pressure and help solidify your understanding of key concepts.
