Class 11 Accountancy Top 55 Mcqs by DR Vinod Kumar Author of Ultimate Book of Accountancy

SOURCE : ULTIMATE BOOK OF ACCOUNTANY (Author Dr Vinod Kumar) Contact No.
9459514442
Class 11th Accountancy Top 55 MCQs by Dr Vinod Kumar

Author of Ultimate Book of Accountancy
Question 1
What is the next step of accounting after Identifying and measuring the financial transactions?
(a) Classifying (b) Summarising
(c) Recording (d) Analysis and Interpretation
Answer: (c) Recording
Question 2
2. Which of the following is not a limitation of accounting?
(a) Window Dressing (b) It ignores effect of price level changes
(c) It ignores qualitative elements (d) Can be used as an Evidence in Court
Answer: (d) Can be used as an Evidence in Court
Question 3
SOURCE : ULTIMATE BOOK OF ACCOUNTANY (Author Dr Vinod Kumar) Contact No. 9459514442
3. Which of the following is not a business transaction?
(a) Withdrew 10,000 from business for personal use by the proprietor
(b) Proprietor Withdrew Rs.20,000 from the Bank Account of the firm to pay the school fees of his
son
(c) Proprietor withdrew Rs.12,000 from his personal account to pay the school fees of his son
(d) Goods taken worth Rs.3,000 for personal use
Answer: (c) Proprietor withdrew Rs.12,000 from his personal account to pay the school fees of his
son
Question 4
Find the correct option:
Assertion (A) :
Trade Discount is not recorded in the books of accounts, even if goods are purchased in cash.
Reason (R) :
Trade Discount is allowed for timely payment of due amount
(a) Both Assertion and Reason are correct and Reason is the correct explanation of Assertion.
(b) Both Assertion and Reason are correct but Reason is not the correct explanation of Assertion.
(c) Only Assertion is correct
(d) Only Reason is correct
Question 5
Find the Correct Option:
Assertion (A) :
Expenditure of Revenue Nature that give benefit for more than one accounting period is
categories as Deferred Revenue Expenditure
Reason (R) :
A revenue expenditure, the benefit of which will accrue in more than one financial year and will
be written off in the same manner (in more than one accounting period) is called Deferred
Revenue Expenditure.
Answer: (a) Both Assertion and Reason are correct and Reason is the correct explanation of
Assertion
Question 6
Assertion (A) :
Whenever goods are going out of the business without sales, purchase account is to be credited.
Reason (R) :
Goods will be recorded in the purchase book first and not in any other account.
Answer: (c) Only Assertion is correct
Question 7
Assertion (A) :
The last step of accounting is to provide all the financial information on time to its users.
Reason (R) :
Communicating the financial information to its users is necessary so that valuable decisions may
be taken on time
Answers: (a) Both Assertion and Reason are correct and Reason is the correct explanation of
Assertion.
Question 8
Pick the odd one out in context to the Cash Book:
(a) Bank Overdraft
(b) Bank Charges
(c) Cash Paid to Creditors
(d) Discount Received
Answer: (d) Discount Received
Question 9
Pick the odd one out in context to the Communicating financing information to the its users:
(a) Management
(b) Investors
(c) Financial Institutions
(d) Creditors
Answer: (a) Management
Question 10
Pick the odd one out in context to the Modern Approach of Debit and Credit:
(a) Machinery (purchased)
(b) Stationery (purchased)
(c) Rent (paid)
(d) Commission (Received)
Answer: (d) Commission (Received)
Question 11
Amount due from Krish (Debtor) Rs.50,000 and received a cheque from him in full and final
settlement of his account after discount of 2%.
Identify the correct entry from the following:
(a) Krish’s A/c Dr. 50,000

To Discount Received A/c 1,000
To Bank A/c 49,000
(b) Bank A/c Dr 49,500

Discount Allowed A/c Dr. 500
To Krish 50,000
(c) Bank A/c Dr 49,000

Discount Allowed A/c Dr. 1,000
To Krish 50,000
(d) Krish’s A/c Dr. 50,000

To Discount Received A/c 500
To Bank A/c 49,500
Answer:
(c) Bank A/c Dr 49,000
Discount Allowed A/c Dr. 1,000
To Krish 50,000
Question 12
Goods Sold on credit to Manmeet Rs.48,000 including GST 12%.
Identify the amount of CGST to be Debited or Credited:
(a) 5,760 Credit (b) 8,000 Credit
(c) 2,880 Credit (d) 4,000 Credit
Answer: (c) 2,880 Credit
Question 13
Paid to Vivaan (Creditor) in full settlement after a discount of 2% i.e. Rs.1,200.
The full amount payable to Vivaan was:
(a) 40,000 (b) 50,000
(c) 65,000 (d) 60,000
Answer: (d) 60,000
Question 14
A minor repair to the office building was done at Rs.20,000 plus GST 18%.
Identify the correct entry from the following:
(i) Repairs A/c Dr. 20,000
Input CGST A/c Dr. 1,800
Input SGST A/c Dr. 1,800
To Cash/Bank A/c 23,600
(ii) Repairs A/c Dr. 23,600

(iii) Repairs A/c Dr. 23,600

To Output CGST A/c 1,800
To Output SGST A/c 1,800
(iv) Building A/c Dr. 20,000

Input CGST A/c Dr. 1,800
Input SGST A/c Dr. 1,800
Ans. (ii) Repairs A/c Dr. 23,600

Question 15
A debtor is declared insolvent and received 60 paise in a rupee from his official receiver. An amount
of Rs.14,400 was debited as Bad Debts.
What total amount was due from the debtor?
(a) 32,000 (b) 34,000
(c) 36,000 (d) 38,000
Answer: (c) 36,000
Question 16
Ridhi from whom Goods were purchased at a trade discount of 10%, amount paid to Ridhi (Creditor)
in full settlement at a 2% cash discount i.e. Rs.900.
What was the list price of the goods purchased?
(a) 45,000 (b) 48,000
(c) 50,000 (d) 60,000
Answer: (c) 50,000
Question 17
Nishu (Debtor) from whom an amount was due, she was declared insolvent and paid only 70 paise in
a rupee. Total bad debts from her were written off Rs.7,200.
What amount is received by the firm?
(a) 24,000 (b) 16,800
(c) 15,000 (d) 16,500
Answer: (b) 16,800
Question 18
Goods purchased from Yashika of list price Rs.50,000 less Trade Discount 10%. Out of which, goods
of list price of Rs.3,000 were not as per the specification, so these goods were returned back to
Yashika.
Yashika’s Account will be:
(a) Debited with Rs.3,000 (b) Debited with Rs.3,300
(c) Debited with Rs.2,700 (d) Debited with Rs.2,500
Answer: (c) Debited with Rs.2,700
Question 19
Mohan (Debtor) who was declared insolvent by the court, from whom Rs.6,000 was due, received
from his official receiver 55 paise in a rupee and Mohan has promised to pay rest of the amount next
year.
How much amount is to be credited as Bad Debts Recovered:
(a) 6,000 (b) 2,700
(c) 3,000 (d) 3,300
Answer: (d) 3,300
Question 20
A Machinery purchased on 1st October 2020 for Rs.8,00,000 and paid normal expenses Rs.20,000 for
the transportation. Depreciation is to be charged @ 10% p.a.
Amount of Depreciation on 31st March 2021:
(a) 80,000 (b) 82,000
(c) 40,000 (d) 41,000
Answer: (c) 40,000
Question 21
A Second Hand Machinery purchased on 1st July 2020 for Rs.3,60,000 and spent Rs.1,40,000 on it to
make it serviceable. Depreciation is charged @ 12% p.a.
Depreciation amount on 31st March 2021:
(a) 45,000 (b) 48,000
(c) 50,000 (d) 32,400
Answer: (a) 45,000
Question 22
Placed an order of goods for Rs.2,00,000 and requested for 10% Trade Discount and Cash discount of
2% at the time of delivery of goods.
Purchase Account is to be debited with:
(a) 2,00,000 (b) 1,80,000 (c) 1,76,400 (d) No Entry
Answer: (d) No Entry
Question 23
Proprietor sold his personal car at a loss of 20% for Rs.1,80,000 and Business furniture of Rs. 40,000
was sold at a loss of 10%. Amount of both the transactions was used for business purpose.
Proprietor’s Capital Account is to be credited with:
(a) 1,80,000 (b) 2,20,000 (c) 2,16,000 (d) No Entry
Answer: (a) 1,80,000
Question 24
Which of the following statement is not correct?
(a) Cash Book records all cash receipts and cash payments
(b) Cash Book records only those transactions which have one aspect related to Cash and Bank or
both.
(c) When cash is deposited into bank, it is recorded in the Debit of Bank Column and Credit of Cash
Column in the Cash Book.
(d) Cash Book is prepared on Accrual Basis principle
Answer: (d) Cash Book is prepared on Accrual Basis principle
Question 25
Identify the wrong statement from the following:
(a) When Cash Book is prepared, no need to prepare cash account in the ledger.
(b) Withdrawal of cash from bank for office use will be shown as debit of cash column and credit of
bank column in cash book.
(c) Posting of transactions means entering transactions in ledger
(d) Ledger account is prepared from the subsidiary books
Answer: (d) Ledger account is prepared from the subsidiary books
Question 26
Minimum how many accounts can be affected by a transaction as per the double entry system
(a) Two (b) Three (c) Four (d) No limit
Answer: (a) Two
Question 27
Identify the wrong statement:
(a) Business transactions are recorded in the books in chronological order
(b) Journal is also called a book of primary entry
(c) Withdrawal of cash from business by the proprietor for office use is shown as Drawings
(d) Discount given due to poor quality of goods is recorded as Rebate and not as Discount
Answer: (c) Withdrawal of cash from business by the proprietor for office use is shown as Drawings
Question 28
If total assets of a business are Rs.10,00,000 and outside liabilities are 40% of the total assets. What
is the amount of owner’s equity?
(a) 10,00,000 (b) 4,00,000 (c) 14,00,000 (d) 6,00,000
Answer: (d) 6,00,000
Question 29
On 31st March 2021, Vinod & Sons has provided the following information:
Total Assets ……………………………….. 4,00,000
External Liabilities ………………………. 20,000
Additional Capital was introduced by proprietor during the year Rs.50,000
Life insurance premium paid Rs.24,000
Profit at the end of the year was Rs.60,000
Capital in the beginning was_____________
(a) 3,54,000 (b) 2,94,000
(c) 3,04,000 (d) 3,24,000
Answer: (b) 2,94,000
Question 30
Mr. Mohan has provided the following information of his business:
Capital at the end of the year 31st March 2021 was…………………………. Rs.2,40,000
Loss during the year was …………………………………………………………………..Rs.25,000
Mohan took goods for personal use …………………………………………………Rs.12,000
Additional capital introduced by Mohan on 1st October 2020 ……………Rs.80,000
Opening Capital of Mohan will be:
(a) 1,67,000 (b) 1,47,000 (c) 1,97,000 (d) 1,77,000
Answer: (c) 1,97,000
Question 31
Nishu has provided the following information:
Capital on 1st April 2020 ……………………………………………….. 1,25,000
Additional Capital introduced 1 July 2020 ………………………25,000
Goods taken for personal use …………………………………………20,000
Capital at the end of the year 31st March 2021……………….1,12,500
Profit OR Loss during the year was:
(a) 17,500 Profit (b) 15,000 Loss (c) 12,500 Loss (d) 17,500 Loss
Answer: (d) 17,500 Loss
Question 32
Yashika has provided the following information of her business:
Total Assets on 31st March 2021 ……………………………………… 8,00,000
On that date External Liabilities ………………………………………..2,70,000
Additional Capital introduced on 1st July 2020 Rs.1,50,000
Opening Capital of Yashika __________
(a) 5,30,000 (b) 3,70,000 (c) 3,80,000 (d) 4,20,000
Answer: (c) 3,80,000
Question 33
Krish started a business on 1st July 2020 with a capital of Rs.4,00,000 and a bank loan of Rs.1,00,000.
On 1st December 2020 he introduced additional capital of Rs.80,000. His drawings at the end of the
year were Rs.10,000. Profit earned by the firm disclosed on 31st March 2021 was Rs.38,000.
Total Assets of the firm on 31st March 2021 were:
(a) 6,08,000 (b) 5,08,000 (c) 6,00,000 (d) 5,98,000
Answer: (a) 6,08,000
Question 34
Param has provided the following information of his business:
Total Assets ……………………………….. Rs.2,00,000
External Liabilities ……………………….Rs.55,000
Additional Capital introduced during the year Rs.40,000
Drawings made during the year Rs.8,000
Profit earned by the firm for the year Rs.43,000
Find out the Opening Capital of Param:
(a) 70,000 (b) 80,000 (c) 90,000 (d) 1,00,000
Answer: (a) 70,000
Question 35
From the following transactions, if any transaction effects credit side of cash book (Cash Column) it
means:
(a) Cash withdrawn from the bank for office use
(b) Cash Received from a Debtor
(c) Bank Charges Paid
(d) Cash Deposited into Bank
Answer: (d) Cash Deposited into Bank
Question 36
Identify the Revenue from the following items:
(a) Goods Purchased for Business
(b) Stationery purchased for office use
(c) Goods sold in cash
(d) Rent due for last 3 months
Ans. (c) Goods sold in cash
Question 37
Which of the following is not recorded as ‘Drawings’ by the proprietor?
(a) Life Insurance premium paid by the business
(b) Income Tax paid by the Sole Proprietorship firm
(c) Cash Withdrawn for personal use against the capital
(d) Goods taken for personal use
Ans. (c) Cash Withdrawn for personal use against the capital
Question 38
From the viewpoint of Business ‘Capital’ invested by the Proprietor is:
(a) a Liability
(b) Investment
(c) Non-current Asset
(d) Expense
Ans. (a) a Liability
Question 39
Purchase refers to the buying of:
(a) Purchase of Stationery for the office use
(b) Purchase of Assets for the Business
(c) Purchase of goods in cash and credit
(d) All of the above
Ans. (c) Purchase of goods in cash and credit
Question 40
Identify the wrong Statement from the following:
(a) Decrease in Fixed Tangible assets is treated as Depreciation
(b) Increase in Fixed Tangible Assets is treated as purchase of assets
(c) Decrease in Fixed Intangible assets is treated as Amortisation
(d) AS per the law business and businessman are separate entity
Ans. (d) AS per the law business and businessman are separate entity
Question 41
Pick the odd one out:
(a) Debtors
(b) Book Debts
(c) Customers
(d) Suppliers
Ans. (d) Suppliers
Question 42
Match the followings:
1. Revenue Receipts a) Electricity Expenses

2. Capital Receipts b) Purchase of Machinery
3. Revenue Expenditure c) Interest Received on Fixed Deposits
4. Capital Expenditure d) Sale of old Furniture
(a) 1. b; 2 d; 3. a; 4 c
(b) 1. c; 2 d; 3. a; 4 b
(c) 1. c; 2 d; 3. b; 4 a
(d) 1. c; 2 b; 3. a; 4 d
Answer: (b) 1. c; 2 d; 3. a; 4 b
Question 43
Shivangi has provided the following information of her business on 31st March 2021:
Total Assets ………………………………….. 6,75,000
Owner’s Equity ………………………………3,25,000
Outstanding Rent …………………………….5,000
Creditors…………………………………………70,000
Total External Liabilities of the firm:
(a) 6,75,000 (b) 25,000 (c) 4,00,000 (d) 3,50,000
Answer: (d) 3,50,000
Question 44
Lakshay commenced business on 1st September 2020 with a capital of Rs.7,00,000. On 31st March
2021 firm made a loss of Rs.80,000. On that date after all adjustments, total assets of the firm were
Rs.13,00,000 and Total external liabilities were Rs.4,50,000.
Closing Capital of Lakshay was:
(a) 7,00,000 (b) 6,10,000 (c) 8,50,000 (d) 6,70,000
Answer: (c) 8,50,000
Question 45
Pick the odd one out:
(a) Cash Book
(b) Purchase Book
(c) Sales Book
(d) Pass Book
Answer: (d) Pass Book
Question 46
Goods supplied (Costing 80,000) to Krish, issued invoice at 25% above cost less 10% Trade Discount
and 2% Cash Discount, full amount was received immediately.
The amount of Discount was recorded in the books:
(a) 2,000 (b) 1,800 (c) 1,440 (d) 12,000
Answer: (b) 1,800
Question 47
Goods of Rs.1,00,000 were purchased at a trade discount of 10% from Lakshay. Sold 1/5th of the
above goods at a profit of 20% at a cash discount of 2%.
The amount of discount was recorded in the books:
(a) 480 (b) 432 (c) 450 (d) 465
Answer: (b) 432
Question 48
Goods sold to Mokshi cost price Rs.60,000, at a profit of 25% less trade Discount 10% and cash
discount 2%. 60% amount is still receivable from Mokshi.
The amount of Discount to be recorded in the books:
(a) 510 (b) 520 (c) 530 (d) 540
Answer: (d) 540
Question 49
Purchased goods from Manmeet for 50,000 at a trade discount of 10% and a cash discount of 2%.
Amount still payable to Manmeet is 12,500.
Amount of discount to be recorded in the books:
(a) 600 (b) 620 (c) 630 (d) 650
Answer: (d) 650
Question 50
Goods of costing Rs.1,60,000 sold to Param at a profit of 25%, less 10% trade discount and 2% cash
discount. Amount still receivable from Param Rs.33,500.
How much amount is received from Param?
(a) 2,930 (b) 3,600 (c) 2,850 (d) 2,750
Answer: (a) 2,930
Question 51
Assertion (A)
Purchase of Asset on credit will not increase the Creditors of the firm.
Reason (R)
List of creditors include only those to whom amount is payable for credit purchase of goods.
Choose the correct option:
(a) Both Assertion and Reason are correct and Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are correct but Reason is not the correct explanation of the Assertion
Ans. (a) Both Assertion and Reason are correct and Reason is the correct explanation of the
Assertion.
Question 52
Assertion (A)
Depreciation is fall in the value of a Fixed Tangible Asset because of usage, passage of time and
accident etc.
Reason (R)
Depreciation can be charged on all fixed assets whether they are tangible or intangible.
Ans. (c) Only Assertion is correct
Question 53
Assertion (A)
As per the Prudence Principle ‘Closing Stock is valued at cost price or its net realizable value
whichever is less.
Reason (R)
So that a business firm cannot show the better picture than what it actually is.
Assertion.
Question 54
Assertion (A)
Human resources in a business firm are important but are not reflected in the financial statements
of the firm.
Reason (R)
Transactions should be recorded from view point of business and not from the view point of
businessman/owner.
Ans. (b) Both Assertion and Reason are correct but Reason is not the correct explanation of the
Assertion
Question 55
Assertion (A)
Capital is treated as liability of the business and it is shown in the Liabilities side of Balance Sheet.
Reason (R)
As per the Business Entity Principle both Businessman and Business are separate entity.
Assertion.
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SOURCE : ULTIMATE BOOK OF ACCOUNTANY (Author Dr Vinod Kumar) Contact No.

Class 11th Accountancy Top 55 MCQs by Dr Vinod Kumar

(a) Classifying (b) Summarising

(c) Recording (d) Analysis and Interpretation

Answer: (c) Recording

(a) Window Dressing (b) It ignores effect of price level changes

(c) It ignores qualitative elements (d) Can be used as an Evidence in Court

Answer: (d) Can be used as an Evidence in Court

3. Which of the following is not a business transaction?

(d) Goods taken worth Rs.3,000 for personal use

(c) Only Assertion is correct

(d) Only Reason is correct

(c) Only Assertion is correct

(d) Only Reason is correct

(c) Only Assertion is correct

(d) Only Reason is correct

Answer: (c) Only Assertion is correct

(c) Only Assertion is correct

(d) Only Reason is correct

(a) Bank Overdraft

(b) Bank Charges

(c) Cash Paid to Creditors

(d) Discount Received

Answer: (d) Discount Received

(c) Financial Institutions

Answer: (a) Management

(a) Machinery (purchased)

(b) Stationery (purchased)

(c) Rent (paid)

(d) Commission (Received)

Answer: (d) Commission (Received)

Identify the correct entry from the following:

(a) Krish’s A/c Dr. 50,000

(b) Bank A/c Dr 49,500

(c) Bank A/c Dr 49,000

(d) Krish’s A/c Dr. 50,000

Answer: (c) 2,880 Credit

Answer: (d) 60,000

(ii) Repairs A/c Dr. 23,600

(iii) Repairs A/c Dr. 23,600

(iv) Building A/c Dr. 20,000

Ans. (ii) Repairs A/c Dr. 23,600

Answer: (c) 36,000

Answer: (c) 50,000

Answer: (b) 16,800

Yashika’s Account will be:

(a) Debited with Rs.3,000 (b) Debited with Rs.3,300

(c) Debited with Rs.2,700 (d) Debited with Rs.2,500

Answer: (c) Debited with Rs.2,700

How much amount is to be credited as Bad Debts Recovered:

(a) 6,000 (b) 2,700

(c) 3,000 (d) 3,300

Answer: (d) 3,300

Amount of Depreciation on 31st March 2021:

(a) 80,000 (b) 82,000

(c) 40,000 (d) 41,000

Answer: (c) 40,000

Depreciation amount on 31st March 2021:

(a) 45,000 (b) 48,000