Journal and Ledger

1. The book in which the transaction is recorded for the first time is called ………
(a) Ledger (b) Journal
(c) Trial Balance (d) None of these
2. Journal is considered as the book of original entry.
(a) True (b) False
(c) Can’t say (d) Partially true
3. In a journal, transactions are recorded in chronological order.
(a) True (b) False
(c) Can’t say (d) Partially true
4. When the number of accounts to be debited or credited is more than one, entry
made for recording the transaction is called ……… journal entry.
(a) single (b) compound
(c) normal (d) None of these
5. Which of the following is/are feature(s) of journal?
(i) It is a daily accounting record.
(ii) It records both credit and debit aspects of a transaction.
(iii) No explanation of the transactions is given.
(a) Only (i) (b) (i) and (ii)
(c) (i) and (iii) (d) (i) (ii) (iii)
6. Which of the following is a function of a journal?
(a) To keep a chronological record of all transactions.
(b) To provide the basis for posting into ledger.
(c) To analyse each transaction into debit and credit aspects by using
double entry system of book keeping.
(d) All of the above
7. A journal helps in maintaining the identity of each transaction by keeping a
complete record of each transaction at one place on a permanent basis.
 (a) True (b) False
(c) Can’t say (d) Partially true
8. Which of the following is/are advantage(s) of maintaining a journal?
(i) As transactions in journal are entered as and when they take place, the
possibility of omission of a transaction in the books of accounts is
minimised.
(ii) Journal facilitates cross checking of ledger accounts in case a trial
balance does not agree.
(iii) It is bulky.
(a) Only (i) (b) (i) and (ii)
(c) (i) and (iii) (d) (i) (ii) (iii)
9. The page number of the ledger account where the posting has been made from
the journal, is recorded in the ………. column of the journal.
(a) date (b) debit
(c) credit (d) ledger folio
10. ……… is a brief explanation of the transaction with necessary details.
(a) Date Column (b) Credit Column
(c) Narration (d) Ledger Folio
11. Identify the account to be debited and credited respectively for the following
transaction. Raag commenced business with cash ₹ 1,00,000.
(a) Cash account debited with ₹ 1,00,000 and Raag account credited with
₹ 1,00,000.
(b) Cash account debited with ₹ 1,00,000 and Capital account credited with
₹ 1,00,000.
(c) Capital account debited with ₹ 1,00,000 and Cash account credited with
₹ 1,00,000.
(d) None of the above
12. While passing a journal entry, the accounts of all losses and expenses are
credited.
(a) True (b) False
 (c) Can’t say (d) Partially true
13. When goods are purchased, Goods A/c is debited.
(a) True (b) False
(c) Can’t say (d) Partially true
14. Purchases Return Account is a nominal account and is credited while passing
a journal entry.
(a) True (b) False
(c) Can’t say (d) Partially true
15. What will be the journal entry if goods of ₹ 20,000 are purchased for cash
from Surbhi?
(a) Goods A/c Dr 20,000
To Surbhi A/c 20,000
(b) Purchases A/c Dr 20,000
To Surbhi A/c 20,000
(c) Purchases A/c Dr 20,000
To Cash A/c 20,000
(d) None of the above
16. If goods of ₹ 20,000 are purchased on credit from Rati, the
(a) Purchases account is debited with ₹ 20,000 and Rati account is credited
with ₹ 20,000.
(b) Purchases account is debited with ₹ 20,000 and Cash account is credited
with ₹ 20,000.
(c) Rati account is debited with ₹ 20,000 and Purchases account is credited
with ₹ 20,000.
(d) None of the above
17. What is the journal entry if goods of ₹ 20,000 are sold for cash to B?
(a) Cash A/c Dr 20,000
To B A/c 20,000
(b) Cash A/c Dr 20,000
 To Sales A/c 20,000
(c) Cash A/c Dr 20,000
To Goods A/c 20,000
(d) None of the above
18. What is the journal entry if goods of ₹ 20,000 are sold on credit to S?
(a) S A/c Dr 20,000
To Sales A/c 20,000
(b) Cash A/c Dr 20,000
To Sales A/c 20,000
(c) S A/c Dr 20,000
To Goods A/c 20,000
(d) None of the above
19. Reem purchased furniture worth ₹ 50,000 for cash from M/s XYZ Ltd. The
transaction will be shown in the journal as
(a) Furniture A/c Dr 50,000
To XYZ Ltd A/c 50,000
(b) Furniture A/c Dr 50,000
To Cash A/c 50,000
(c) XYZ Ltd A/c Dr 50,000
To Furniture A/c 50,000
(d) None of the above
20. Agira purchased furniture worth ₹ 50,000 on credit from M/s XYZ Ltd. The
transaction will be shown in the journal as
(a) Furniture account debited with ₹ 50,000 and XYZ Ltd account credited
with ₹ 20,000.
(b) Furniture account debited with ₹ 50,000 and Cash account credited with
₹ 20,000.
(c) XYZ Ltd account debited with ₹ 50,000 and Furniture account credited
with ₹ 20,000.
 (d) None of the above
21. Pass journal entry if Plant and Machinery amounting to ₹ 2,30,000 purchased
by paying ₹ 30,000 cash immediately.
(a) Plant and Machinery A/c Dr 2,30,000
To Cash A/c 30,000
To Creditors A/c 2,00,000
(b) Cash A/c Dr 30,000
Creditors A/c Dr 2,00,000
To Plant and Machinery A/c 2,30,000
(c) Plant and Machinery A/c Dr 2,30,000
To Cash A/c 30,000
To Suspense A/c 2,00,000
(d) None of the above
22. Pass journal entry if goods costing ₹ 50,000 are sold for ₹ 70,000.
(a) Cash A/c Dr 50,000
To Sales A/c 50,000
(b) Cash A/c Dr 70,000
To Sales A/c 70,000
(c) Cash A/c Dr 70,000
To Goods A/c 70,000
(d) None of the above
23. What will be the journal entry if proprietor withdraws ₹ 35,000 cash for
personal use?
(a) Proprietor A/c Dr 35,000
To Cash A/c 35,000
(b) Cash A/c Dr 35,000
To Drawings A/c 35,000
(c) Drawings A/c Dr 35,000
 To Cash A/c 35,000
(d) Cash A/c Dr 35,000
To Proprietor A/c 35,000
24. If a business pays insurance by cheque of ₹ 2,500, which of the following
account will be debited?
(a) Insurance account (b) Cheque account
(c) Cash account (d) Bank account
25. What will be the journal entry if salaryof ₹ 5,500 is outstanding?
(a) Outstanding Salary A/c Dr 5,500
To Salary A/c 5,500
(b) Salary A/c Dr 5,500
To Outstanding Salary A/c 5,500
(c) Salary A/c Dr 5,500
To Cash A/c 5,500
(d) None of the above
26. …………….. is an allowance given by the seller of goods out of selling price.
(a) Credit (b) Bad debt
(c) Discount (d) None of these
27. By what amount will be purchases account debited with, if Riya buys goodsat
the list price of ₹ 1,00,000 from Mary less 20% trade discount and 2%
cash discount and paid 50% by cheque?
(a) ₹ 1,00,000 (b) ₹ 80,000
(c) ₹ 78,000 (d) None of these
28. By what amount will be bank account debited with, if goods are sold to Sid
at the list price of ₹ 4,00,000 less 20% trade discount and 2% cash discount and
paid 50% by cheque?
(a) ₹ 3,20,000 (b) ₹ 1,60,000
(c) ₹ 1,56,800 (d) None of these
29. What is the net amount if a trader sells goods of the list price of ₹ 20,000 at
10% trade discount and 2% cash discount?
(a) ₹ 20,000 (b) ₹ 18,000
(c) ₹ 17,640 (d) None of these
30. Rebate is a reduction in the value of goods sold allowed by the seller.
(a) True (b) False
(c) Can’t say (d) Partially true
31. Rebate is usually allowed for
(a) inferior quality of goods sold
(b) goods sold being not as per specification
(c) Both (a) and (b)
(d) None of the above
32. Which of the following journal entry will be passed by a seller for
allowing rebate on goods sold?
(a) Rebate Allowed A/c Dr
To Purchaser A/c
(b) Purchaser A/c Dr
To Rebate Allowed A/c
(c) Seller A/c Dr
To Rebate Received A/c
(d) Seller A/c Dr
To Rebate Received A/c
33. On 10th June, goods worth ₹ 30,000 were sold to H by IIA Ltd. On 12th
June, H returned goods worth ₹ 2,000. On 14th June, H pays ₹ 27,500 in
full settlement of his account. What journal entry will be passed in the books of
IIA Ltd on 14th June?
(a) Cash A/c Dr 27,500
To H 27,500
(b) Cash A/c Dr 27,500
 Discount Allowed A/c Dr 500
To H 28,000
(c) H A/c Dr 27,500
To Cash 27,500
(d) None of the above
34. What is the journal entry passed for inter-state purchase of goods on which
GST is levied?
(a) Purchases A/c Dr
Input CGST A/c Dr
Input SGST A/c Dr
To Cash
(b) Purchases A/c Dr
Input IGST A/c Dr
To Cash
(c) Purchases A/c Dr
Input SGST A/c Dr
To Cash
(d) None of the above
35. Mir bought goods for ₹ 10,000 plus CGST and SGST @ 9% each. What will
be the journal entry for the above transaction?
(a) Purchases A/c Dr 10,000
Input CGST A/c Dr 900
Input SGST A/c Dr 900
To Cash A/c 11,800
(b) Purchases A/c Dr 10,000
To Cash A/c 10,000
(c) Cash A/c Dr 11,800
To Purchases A/c 10,000
 To Input CGST A/c 900
To Input SGST A/c 900
(d) None of the above
36. What is the journal entry passed for return of intra-state purchase of goods on
which GST is levied?
(a) Cash A/c Dr
To Purchases Return A/c
To Input CGST A/c
To Input SGST A/c
(b) Purchases Return A/c Dr
Input IGST A/c Dr
To Cash
(c) Purchases Return A/c Dr
Input SGST A/c Dr
To Cash
(d) None of the above
37. If goods are sold to S for ₹ 3,000 plus CGST and SGST @ 9% each, then
what will be the journal entry passed?
(a) S A/c Dr 3,000
To Sales A/c 3,000
(b) S A/c Dr 3,540
To Sales A/c 3,000
To Output CGST A/c 270
To Output SGST A/c 270
(c) S A/c Dr 3,540
To Sales A/c 3,000
To Output GST A/c 540
(d) None of the above
38. If KYU Ltd sells good to Kia for ₹ 20,000 plus CGST and SGST @ 9% each
and she pays the due amount immediately and avails cash discount @ 2%, then
what will be the journal entry passed in the books of KYU Ltd?
(a) Bank A/c Dr 20,000
To Sales A/c 20,000
(b) Bank A/c Dr 23,138
Discount Allowed A/c Dr 472
To Sales A/c 20,000
To Output CGST A/c 1,800
To Output SGST A/c 1,800
(c) Bank A/c Dr 23,600
To Sales A/c 20,000
To Output GST A/c 3,600
(d) None of the above
39. Ram withdrew ₹ 50,000 from bank for private use. Which account will be
debited while passing journal entry?
(a) Ram (b) Cash
(c) Drawings (d) None of these
40. What will be the correct journal entry for the following? Placed in fixed
deposit at bank by transfer from current account ₹ 2,500.
(a) Fixed Deposit A/c Dr 2,500
To Bank A/c 2,500
(b) Fixed Deposit A/c Dr 2,500
To Current A/c 2,500
(c) Current A/c Dr 2,500
To Fixed Deposit A/c 2,500
(d) None of the above
41. If V’s cheque of ₹ 20,000 is dishonoured and returned, how will this be
recorded in journal?
 (a) V’s account debited with ₹ 20,000 and Cheque account credited with ₹
20,000.
(b) V’s account debited with ₹ 20,000 and Bank account credited with ₹
20,000.
(c) Bank account debited with ₹ 20,000 and V’s account credited with ₹
20,000.
(d) None of the above.
42. What will be the correct journal entry for the following?
Purchased machinery from Sunil for ₹ 20,000 and paid him by means of a bank
draft for ₹ 20,020.
(a) Machinery A/c Dr 20,000
To Bank A/c 20,000
(b) Machinery A/c Dr 20,020
To Bank A/c 20,020
(c) Machinery A/c Dr 20,000
Draft Commission A/c Dr 20
To Bank A/c 20,020
(d) None of the above
43. When the goods are sold to a customer on credit, and if the amount becomes
irrecoverable due to his insolvency or for some other reason, the amount not
recovered is called ……… .
(a) Doubtful debts
(b) Provision for doubtful debts
(c) Recoverable debt
(d) Bad debts
44. Bad debt account is a nominal account.
(a) True (b) False
(c) Can’t say (d) Partially true
45. What will be the correct journal entry for the following? R became bankrupt
and was able to pay only 60% of the amount of ₹ 1,00,000 due from him.
(a) Cash A/c Dr 60,000
To R A/c 60,000
(b) Cash A/c Dr 60,000
Bad Debts A/c Dr 40,000
To R A/c 1,00,000
(c) Cash A/c Dr 40,000
Bad Debts A/c Dr 60,000
To R A/c 1,00,000
(d) None of the above
46. If an old amount written-off as bad debt is recovered, then while passing a
journal entry.
(a) Cash account is debited and Bad debts recovered account is credited.
(b) Cash account is debited and Bad debts account is credited.
(c) Cash account is debited and Provision fordoubtful debts account is
credited.
(d) None of the above
47. If goods are withdrawn by proprietor for personal use, then while passing a
journal entry.
(a) Purchases account is debited and Drawings account is credited.
(b) Proprietor account is debited and Purchases account is credited.
(c) Drawings account is debited and Purchases account is credited.
(d) None of the above
48. If goods worth ₹ 25,000 are distributed as charity, then while passing a journal
entry.
(a) Purchases account is debited with ₹ 25,000 and Charity account is
credited with ₹ 25,000.
 (b) Charity account is debited with ₹ 25,000 and Purchases account is
credited with ₹ 25,000.
(c) Drawings account is debited with ₹ 25,000 and Purchases account is
credited with ₹ 25,000.
(d) None of the above
49. If goods worth ₹ 30,000 were lost in a fire, then while passing a journal entry
which of the following account is debited?
(a) Loss by fire account
(b) Drawings account
(c) Sales account
(d) Purchases account
50. If K pays sundry expenses for postage and conveyance of ₹ 200, then while
passing a journal entry which of the following account is debited?
(a) Sundry Expenses account
(b) Postage and Conveyance account
(c) Postage account
(d) Conveyance account
51. What will be the amount of goodwill in opening entry, if the following
balances appear in the books of RR & Sons? Assets-Cash in Hand ₹ 430; Cash at
Bank ₹ 2,675; Sundry Debtors ₹ 7,495; Closing Stock ₹ 9,000; Machinery and
Equipments ₹ 6,000. Liabilities and Capital-Creditor, ₹ 5,600; Capital ₹ 25,000.
(a) ₹ 5,000 (b) ₹ 10,600
(c) ₹ 5,600 (d) None of these
52. Closing stock is valued at cost or net realisable value whichever is higher.
(a) True (b) False
(c) Can’t say (d) Partially true
53. Which of the following is the correct adjustment entry for closing stock?
(a) Closing Stock A/c Dr
To Trading A/c
(b) Closing Stock A/c Dr
 To P&L A/c
(c) Trading A/c Dr
To Closing Stock A/c
(d) None of the above
54. What will be the journal entry if depreciation is charged @ 10% per annum
for 1 month on furniture worth ₹ 30,000?
(a) Depreciation on Furniture A/c Dr 250
To Furniture A/c 250
(b) Depreciation on Furniture A/c Dr 3,000
To Furniture A/c 3,000
(c) Furniture A/c Dr 250
To Depreciation on Furniture A/c 250
(d) None of the above
55. How is interest on capital treated in journal?
(a) Interest on capital account is debited and Bank account is credited.
(b) Interest on capital account is debited and Capital account is credited.
(c) Interest on capital account is debited andDrawings account is credited.
(d) None of the above
56. How is interest on drawings amounting to ₹ 250 treated in journal?
(a) Interest on drawings account is debited and Drawings account is
credited.
(b) Bank account is debited and Interest on drawings account is credited.
(c) Drawings account is debited and Interest on drawings account is
credited.
(d) None of the above
57. What will be the journal entry if salaries of ₹ 20,000 are unpaid?
(a) Outstanding Salaries A/c Dr 20,000
To Salaries A/c 20,000
 (b) Salaries A/c Dr 20,000
To Outstanding Salaries A/c 20,000
(c) Salaries A/c Dr 20,000
To Cash A/c 20,000
(d) None of the above
58. What will be the journal entry for adjustment of advanced commission if
commission of ₹ 2,500 is received, half of which is in advance?
(a) Commission A/c Dr 2,500
To Comm. Received in Advance A/c 2,500
(b) Commission A/c Dr 1,250
To Comm. Received in Advance A/c 1,250
(c) Cash A/c Dr 2,500
To Comm. A/c 2,500
(d) None of the above
59. How is income received in advance treated in journal?
(a) Concerned income account is debited and Bank account is credited.
(b) Income received in advance account is debited and Concerned income
account is credited.
(c) Concerned income account is debited and Income received in advance
account is credited.
(d) None of the above
60. How is accrued income of ₹ 2,500 treated in journal?
(a) Accrued income account is debited and Bank account is credited.
(b) Accrued income account is debited and Income account is credited.
(c) Income account is debited and Accrued income account is credited.
(d) None of the above
61. A ……… is the principal book of accounting system which contains all the
accounts related to assets, liabilities, revenues and expenses.
(a) journal (b) ledger
 (c) purchase book (d) sales book
62. Ledger is called as book of final entry.
(a) True (b) False
(c) Can’t say (d) Partially true
63. Which of the following points out utility of a ledger?
(a) To keep a chronological record of all transactions.
(b) The net result of all transactions in respect of a particular account on a
given date can be ascertained only from the ledger.
(c) It is bulky.
(d) None of the above
64. Which of the following correctly distinguishes between a ledger and a
journal?
(a) The journal is the book of first entry (original entry); the ledger is the
book of second entry.
(b) The journal is the book for chronological record; the ledger is the book
for analytical record.
(c) The journal, as a book of source entry, gets greater importance as legal
evidence than the ledger.
(d) All of the above
65. Transaction is the basis of classification of data within the journal while
account is the basis of classification of data within the ledger.
(a) True
(b) False
(c) Can’t say
(d) Partially true
66. All ledger accounts can be classified in which of the following groups?
(a) Incomes and expenses
(b) Permanent accounts and temporary accounts
(c) Losses and gains
 (d) Assets and liabilities
67. In a ledger, all permanent accounts are balanced and carried forward to the
next accounting period.
(a) True
(b) False
(c) Can’t say
(d) Partially true
68. The temporary accounts are closed at the end of the accounting period by
transferring them to the trading and profit and loss account.
(a) True
(b) False
(c) Can’t say
(d) Partially true
69. All temporary accounts appears in the balance sheet.
(a) True (b) False
(c) Can’t say (d) Partially true
70. ……… is the process of transferring the entries from the books of original
entry (journal) to the ledger.
(a) Recording
(b) Drafting
(c) Posting
(d) None of the above
Assertion-Reasoning MCQs
Direction (Q. Nos. 71 to 74) There are two statements marked as Assertion (A)
and Reason (R). Read the statements and choose the appropriate option from the
options given below
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the
correct explanation of Assertion (A)
 (c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true
71. Assertion (A) Journal is a book of original entry.
Reason (R) The transactions are first recorded in a journal in a chronological
order.
72. Assertion (A) The amount not recovered from debtors is debited to bad debts
account.
Reason (R) As per the traditional rule of accounting, losses are debited.
73. Assertion (A) If goods are lost due to theft, loss by theft account is debited.
Reason (R) As per the rules of accounting, all gains are credited.
74. Assertion (A) Income which is earned but not received is credited to accrued
income account.
Reason (R) As per the rules of accounting, all incomes are credited.
Case Based MCQs
Direction Read the following case study and answer questions 75 to 79 on the
basis of the same.
Rajesh started a business with cash ₹ 1,00,000 and a building valued at ₹
5,00,000. He purchased goods amounting to ₹ 2,00,000 out of which goods of ₹
1,80,000 were purchased on credit from Smith. He sold goods to Anil of ₹ 44,000.
Anil returned goods worth ₹ 4,000. He purchased goods of ₹ 63,000 from Karan
but returned goods of ₹ 3,000 on finding them defective. He purchased goods of
₹ 2,000 for cash. He paid for cartage of ₹ 100 and interest on loan amounting to
₹ 1,000.
75. Which is the first book of account that Rajesh will prepare?
(a) Purchase book (b) Sale book
(c) Journal (d) Ledger
76. What is the amount of capital introduced by Rajesh?
(a) ₹ 1,00,000 (b) ₹ 5,00,000
(c) ₹ 6,00,000 (d) Zero
77. What will be the journal entry passed for goods purchased from Smith?
 (a) Purchases A/c Dr 2,00,000
To Cash A/c 20,000
To Smith 1,80,000
(b) Purchases A/c Dr 2,00,000
To Cash A/c 2,00,000
(c) Purchases A/c Dr 2,00,000
To Smith 2,00,000
(d) None of the above
78. Which account will be credited when goods are returned to Karan?
(a) Karan
(b) Purchases Return
(c) Purchases
(d) None of the above
79. For recording the payment of Cartage of ₹ 100.
(a) Cartage account will be debited and Cash account will be credited.
(b) Cash account will be debited and Cartage account will be credited.
(c) Cartage account will be debited and Purchases account will be credited.
(d) None of the above
Direction Read the following case study and answer questions 80 to 84 on the
basis of the same.
Dev is the owner of a trading firm with a capital of ₹ 25,000. During the
year 2021, he bought goods at the list price of ₹ 1,00,000 from Rani less 20%
trade discount and 2 % cash discount and paid 40% by cheque. He sold goods to
Preeti at the list price of ₹ 2,00,000 less 20% trade discount and 2% cash discount
and she paid 50% by cheque. He also sold goods to Tanu for ₹40,000 allowing
her a trade discount of 5% and cash discount of 10 %. She paid 1/4th of the
amount in cash at the time of purchase. He received cash from Jaya for a bad debt
written-off last year amounting to ₹ 400.
80. Why does Dev give cash discount to his customers?
(a) Because he sells goods to them at a very high price.
 (b) To encourage quick payment.
(c) To make some profit even if goods are sold at catalogue price.
(d) None of the above
81. How is a trade discount different from cash discount?
(i) Trade discount is allowed when goods are purchased in a specified
quantity whereas cash discount is allowed when payment is made on or
before a specified date.
(ii) Trade discount is not recorded separately in the books of account
whereas cash discount is separately recorded in the books of account.
(a) Only (i)
(b) Only (ii)
(c) Both (i) and (ii)
(d) Neither (i) nor (ii)
82. What is the amount paid to Rani by cheque?
(a) ₹ 40,000
(b) ₹ 32,000
(c) ₹ 31,360
(d) None of the above
83. What is the amount received in bank (via cheque) from Preeti on sale of goods
to her?
(a) ₹ 1,00,000 (b) ₹ 78,400
(c) ₹ 80,000 (d) None of these
84. What would be the journal entry passed for bad debts of ₹ 400 recovered from
Jaya?
(a) Cash A/c Dr 400
To Bad Debts 400
(b) Cash A/c Dr 400
To Bad Debts Recovered 400
 (c) Cash A/c Dr 400
To Jaya 400
(d) None of the above
Direction Read the following case study and answer questions 85 to 89 on the
basis of the same.
Insha is a student of Class 11 Commerce. She is studying the subject of
accountancy for the first time. After studying the basics of accounting, their
teacher recently taught them about the books of original entry. The teacher also
taught them posting entries to a ledger. The teacher again reiterated that the books
of original entry and ledger are fundamental for maintaining records in any
business. After teaching them the chapter thoroughly, an objective question test
is being held for the students. You are required to answer the following questions
in the test on Insha’s behalf.
85. When an entry is made in journal
(a) assets are listed first.
(b) accounts to be debited listed first.
(c) accounts to be credited listed first.
(d) accounts may be listed in any order.
86. The ledger folio column of journal is used to
(a) record the date on which amount posted to a ledger account.
(b) record the number of ledger account to which information is posted.
(c) record the number of amounts posted to the ledger account.
(d) record the page number of the ledger account.
87. If a transaction is properly analysed and recorded
(a) only two accounts will be used to record the transaction.
(b) one account will be used to record transaction.
(c) one account balance will increase and another will decrease.
(d) total amount debited will equals total amount credited.
88. In a journal, transactions are recorded in ………… order.
(a) chronological (b) anachronistic
 (c) random (d) None of these
89. Ledger is the book for ……… record.
(a) chronological (b) analytical
(c) evidence (d) None of these
Direction Read the following case study and answer questions 90 to 94 on the
basis of the same.
Shobhit has a trading business in Delhi. All his transactions occur within the
limits of Delhi. Shobhit bought goods of ₹ 1,00,000 on credit. He sold them for ₹
1,35,000 in the same state on credit. He paid for railway transport ₹ 8,000. He
bought computer printer for ₹ 10,000. He paid postal charges ₹ 2,000. Assuming
CGST @ 5% and SGST @ 5%, you are required to answer the following
questions.
90. By what amount will creditors account be credited for the purchases of ₹
1,00,000?
(a) ₹ 1,00,000 (b) ₹ 1,05,000
(c) ₹ 1,10,000 (d) None of these
91. ‘‘He sold them for ₹ 1,35,000 in the same state on credit.’’ By what amount
will debtors be debited while passing journal entry?
(a) ₹ 1,35,000 (b) ₹ 1,41,500
(c) ₹ 1,48,500 (d) None of these
92. What will be the total amount paid on
account of transport charges?
(a) ₹ 8,000
(b) ₹ 8,400
(c) ₹ 8,800
(d) None of the above
93. What journal entry would have been passed by Shobhit in case he had
resorted to inter-state purchase of goods on which GST is levied?
(a) Purchases A/c Dr
Input CGST A/c Dr
 Input SGST A/c Dr
To Cash
(b) Purchases A/c Dr
Input IGST A/c Dr
To Cash
(c) Purchases A/c Dr
Input SGST A/c Dr
To Cash
(d) None of the above
94. What is the journal entry passed for return of intra-state purchase of goods on
which GST is levied assuming that Shobhit returned the goods?
(a) Creditors A/c Dr
To Purchases Return A/c
To Input CGST A/c
To Input SGST A/c
(d) Purchases Return A/c Dr
Input IGST A/c Dr
To Cash
(c) Purchases Return A/c Dr
Input SGST A/c Dr
To Cash
(d) None of the above
Direction Read the following case study and answer questions 95 to 99 on the
basis of the same.
Adhiraj started business with cash of ₹ 2,00,000 on 1st April. The following
transactions took place in the month of April, 2021.
95. What will be the amount that will be reflected in capital account of Adhiraj?
(a) ₹ 2,00,000 (b) ₹ 3,00,000 (c) ₹ 5,00,000 (d) None of these
96. What is the balance carried down of purchases account as on 30th April?
(a) ₹ 60,000 (b) ₹ 1,20,000 (c) ₹ 1,00,000 (d) None of these
97. The journal entry to record the sale of goods on credit should include
(a) debit to debtors and credit to capital.
(b) debit to cash and credit to debtors.
(c) debit to sales and credit to debtors.
(d) debit to debtors and credit to sales.
98. What is the balance in the bank account of Adhiraj as on 30th April?
(a) ₹ 1,00,000 (b) ₹ 40,000 (c) ₹ 40,200 (d) ₹ 15,000
99. Process of recording in the journal is called ……… ; the process of recording
in the ledger is known as ……… .
(a) Journalising; Posting (b) Posting; Journalising
(c) Posting; Recording (d) Recording; Writing