Now a days, most of the Competitive Exams, Entrance Exams are conducted on MCQ. Click Here to understand the Forms, Structure, Rules of MCQ, techniques of understanding, analysing and selection correct answer of MCQ,
Play the Video explaining some interesting aspects of selection of correct answer of MCQ.
1. Purchase returns book records
(a) Cash purchase
(b) Credit sales
(c) Return of sold goods
(d) Return of goods purchased on credit
The purchased goods returned to the vendor returned are recorded in purchase returns book. So, option (d) is correct answer.
2. Sales Book records
(a) Cash sales
(b) Sales of assets on credit
(c) Sales of goods on credit
(d) Sales of loose tools
All credit sales of goods are recorded in sales book, So, option (c) is correct answer.
3. Debit Note is issued for purchased goods returned to
(a) Debtors
(b) Creditor
(c) Bank
(d) Customer
If goods purchased on credit is returned to the supplier, a debit note is issued by the buyer to the supplier (creditor). So, (b) is correct answer.
4. Credit Note issued for sold goods returned by buyer to
(a) Debtors
(b) Creditors
(c) Bank
(d) Consigner
If goods sold on credit is returned by the customer (debtor), a credit note is issued by the seller (creditor) to the customer (debtor). So, option (a) is correct answer.
5. A return inward book is kept to record
(a) Coming of all the employees
(b) Sales return
(c) Purchase return
(d) Employees joining back who had left the organization
Sold goods returned by the purchaser are recorded in returns inward book. So, option (b) is the correct answer.
6. Sales Day book is used to record
(a) Credit sales of trading goods
(b) Only Cash sales of trading goods
(c) Sales of all types including capital goods
(d) None of the above.
Only credit sales of trading goods are recoded in Sales day book. So, option (a) is right answer.
7. Purchases Book is used to record
(a) All purchases of goods
(b) All credit purchases
(c) All credit purchases of goods
(d) All credit purchases of assets other than goods.
Only credit purchases of gods are recorded in purchase book. So, option (c) is right answer.
8. Rectifying Entries are recorded in
(a) Ledger
(b) Balance Sheet
(c) Cash Book
(d) Journal Proper
Rectification entries are recorded in the book of original entry (i.e Journal) So, (d) is correct answer.
9. Which of the following is not a book of original entry.
(a) Journal Book
(b) Ledger Book
(c) Purchase book
(d) Sales book
Ledger is not a book of original entry. Entries from Journal, Sales & Purchase book are posted in Ledger. So, option (b) is correct answer.
10. When a customer returns the goods to supplier , which document is sent to him (customer)
(a) An invoice is sent to him
(b) A Debit Note is sent to him
(c) A Credit Note is sent to him
(d) None of the above.
When goods are returned by the customers, a ‘Credit Note’ is made out of in his name by the supplier. So, option (c) is correct answer.
11. The total of Returns Inward book is posted to
(a) Purchase Account
(b) Purchase Returns Account
(c) Sales Returns Account
(d) Individual Accounts of Customer.
Return Inward means return of goods sold (sales returns). So, total of Return Inward is posted to Sales Returns a/c. So, option (c) is correct answer.
12. Closing entries are recorded in
(a) Cash Book
(b) Ledger
(c) Journal Proper √
(d) Balance Sheet
All opening, closing, transfer, rectification & adjustment entries are recorded in journal proper. So, option (c) is correct answer.
13. When the purchase day book of a firm is overcast, it will
(a) Increase gross profit and reduce net profit
(b) Reduce gross profit and increase net profit
(c) Reduce gross profit and as well as net profit
(d) Increase gross profit as well as net profit
Purchase overcast will reduce gross profit (as expenses increases), and so the net profit also. So, option (c) is correct answer.
14. Purchase of fixed assets on credit is originally recorded in
(a) Purchases book
(b) Ledger
(c) Cash book
(d) Journal proper
When assets are purchased on credit, these are recorded in Journal. So, option (d) is correct answer
15. Rent paid by cheque is recorded in
(a) Cash Book
(b) Pass book
(c) Expense Book
(d) Journal Proper
All payments in cash and by cheque are recorded in cash book. Rents paid by cheque are recorded in cash book. So, So, option (a) is correct answer.
16. Goods purchased from Mr. Z, the payment for which is due after two months is recorded in
(a) Purchase Book
(b) Purchase Return Book
(c) Journal Proper
(d) None
Purchase book is used to record the transactions of goods purchased on credit. So, option (a) is correct answer.
17. Goods sold for Cash were returned by a customer but cash was not given immediately.
(a) Journal Proper
(b) Sales Return Book
(c) Cash Book
(d) Sales Return Book and cash Book
Sold Goods returned by customer is recorded in Sales Return book. So, option (b) is correct answer.
More Resources on Accounting concepts, Accounting Principles & Policies.
To learn more about Multiple Choice Questions (MCQ) visit
To learn how to analyse Multiple Choice Questions and select correct answer, visit
To learn how to analyse Multiple Choice Questions and select correct answer
For Complete Resources on Accountancy, visit the following
