MCQ For Class 12 Accountancy CBSE -Set 2

Q 1. The standard format of Journal does not include which of the following?

A) Assets column
B) Date column
C) Description column
D) Amount column

Show Answer

Answer: Option A
Solution: The standard format of Journal does not include Assets column. An asset purchased on account is not recorded in the purchase journal. But many are of opinion to record all credit transactions in multi-column purchase journal.


Q 2. In which of the following order, data is entered into the Journal?

A) Alphabetical order
B) Numeric order
C) Bullets order
D) Chronological order
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Answer: Option D
Solution: In Chronological order, data is entered into the Journal. Journal entries are typically entered in chronological order and debits are entered before credits � debits are entered in a column to the left, and credits are entered to the right.


Q 3. Which of the following accounts will be credited if a company purchases building for cash?

A) Capital account
B) Fixed assets account
C) Building account
D) Cash account
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Answer: Option D
Solution: Cash account will be credited if a company purchases building for cash. Cash is credited because cash is an asset account that decreased because cash was used to pay the bill.


Q 4. Discount for quick repayment of debt is normally referred to as

A) Trade discount
B) Prompt payment discount
C) Cash discount
D) Bulk discount
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Answer: Option C
Solution: Discount for quick repayment of debt is normally referred to as Cash discount. It is called cash discount which might be offered or received.


Q 5. Which of the following specialized journal records “goods returned by customers”?

A) Purchase journal
B) Sales journal
C) Purchase return journal
D) Sales return journal
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Answer: Option D
Solution: Sales return journal records “goods returned by customers”. Sales Return (Journal) Book Sales return books are used to record the goods returned by customers to them on credit.


Q 6. Sales on credit is recorded in which of the following journal?

A) Purchase journal
B) Sales journal
C) Purchase return journal
D) Sales return journal
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Answer: Option B
Solution: The sales journal is used to record all of the company sales on credit. Most often these sales are made up of inventory sales or other merchandise sales.


Q 7. Transactions that a business does not record in any specialized journal are recorded in which of the following books?

A) Cash payment journal
B) Cash receipt journal
C) Purchases return journal
D) General journal
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Answer: Option D
Solution: Transactions that a business does not record in any specialized journal are recorded in General journal.


Q 8. Which of the following specialized journal records “goods returned by the business”?

A) Purchase journal
B) Sales journal
C) Purchase return journal
D) Sales return journal
Show Answer

Answer: Option C
Solution: Purchase return journal records “goods returned by the business”. The Purchases Returns Book is written up from the credit notes received from the suppliers.


Q 9. Sales and purchase journal doesn’t record

A) Credit sales
B) Credit purchases
C) Credit sales and purchases
D) Cash sales and purchases
Show Answer

Answer: Option D
Solution: Sales and purchase journal doesn’t record Cash sales and purchases.


Q 10. Cash received from debtor is recorded in which of the following specialized journals?

A) Purchase Journal
B) Sales Journal
C) Cash receipts journal
D) Cash payments journal
Show Answer

Answer: Option C
Solution: Cash received from debtor is recorded in Cash receipts journal. The cash receipts journal is a special journal used to record cash received by a business.

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