Chapter-3:
Double Entry System
Exercise
Multiple Choice
Questions(MCQ)
1. Double Entry
System is a –
[a] Reporting
system
[b] Financial
Statement preparation system
[c] Recording
system
[d] Debit and
Credit determining system
2. The features
of Double Entry System are-
i) It has two
parties; Receiver and Giver
ii) Total amount
of Debit will be equal to total amount of Credit
iii) Receiver is
Debit and Giver is Credit.
Which one is
correct?
[a] i & ii
[b] ii & iii
[c] i & iii
[d] i, ii &
iii
Considering the
following information answer questions no. 3, 4 & 5:
Mr. Subir Roy
keeps the purchase book, sales book, bills receivable book, bills payable book
etc. for his business institution. Beside this, he records the discounted entries
in other way, because he has clear concept about accounting. Then he prepares
the financial statement for knowing about the financial position of the business.
And this is how, he operates his business continuously.
3. In purchase
book, Mr. Subir Roy records-
[a] Credit
purchase
[b] Credit sales
[c] Cash
purchase
[d] Purchase
return
4. Mr. Subir Roy
records the discounted entries in the-
[a] Cash book
[b] Sales return
book
[c] Bills
receivable book
[d] Journal
proper
5. Why is
opening entry needed for Mr. Subir?
[a] To follow
the accounting cycle
[b] To start the
next accounting year
[c] To justify the
arithmetical
[d] To know the
financial position of accuracy current year
6. Generally,
what type of accounts is not kept in Single entry system?
i) Asset
ii) Income
iii) Expense
Which one is
correct of the following?
[a] i
[b] i & ii
[c] ii & iii
[d] i & iii
7. Which one is
correct?
[a] Opening
capital = opening total assets - closing total assets
[b] Closing
capital = opening total liabilities + closing total liabilities
[c] Opening
capital = opening total assets - opening total liabilities
[d] Closing
capital = opening total assets + closing total assets
8. Which one is
used a rough working for financial statement?
[a] Trial
balance
[b] Adjusting
entries
[c] Closing
entries
[d] Works sheet
9. Which
sequence is correct?
[a] Trial balance,
adjusting entries, works sheet, financial statement
[b] Adjusting
entries, trial balance, financial statement, works sheet
[c] Works sheet,
trial balance, adjusting entries, financial statement
[d] Trial
balance, works sheet, adjusting entries, financial statement
10. If opening
capital is tk.70,000 and closing capital is tk.90,000, what is the amount of profit or loss?
[a] Profit
tk.20,000
[b] Loss
tk.20,000
[c] Loss
tk.70,000
[d] Profit
tk.90,000
11. Which one is
the principle of Double Entry System?
[a] Purchase
increases Debit, income decreases Credit
[b] Expense
increases Debit, Income decreases Credit
[c] Receiver is
Debit and Giver is Credit
[d] Receiver is
Credit and Giver is Debit
12. Now-a-day’s
base of accounting is
i) Cost accounting
system
ii) Single entry
system
iii) Double
entry system
Which one is
correct of the following?
[a] i
[b] ii
[c] iii
[d] i & iii
From the
following information, answer the questions no. 13, 14, & 15:
On 1st June 2012
Mr. Ishmam started a fast food shop with stock of goods of tk. 55,000 at Baily
Road in Dhaka. The following transactions occurred in his business in that month:
Jun-05
|
Sold goods to
Shahed tk.5,000;
|
Jun-12
|
Goods
purchased tk.12,000;
|
Jun-20
|
Sold goods on
credit tk.35,500;
|
Jun-23
|
Cash received
from Rafi tk.5,400;
|
Jun-28
|
Goods returned
to seller tk.3,400.
|
13. Which
transactions will be recorded in the journal proper of Mr. Ishmam?
[a] Sold goods
in cash
[b] Sold goods
on credit
[c] Goods
returned to seller
[d] Started with
stock of goods
14. In which
book the transactions occurred on June 05 and 20 will be recorded?
[a] Purchase
journal
[b] Purchase
return journal
[c] Sales
journal
[d] Sales return
journal
15. Mr. Ishmam
will prepare on returning goods –
[a] Debit note
[b] Credit note
[c] Debit
voucher
[d] Credit
voucher
[Answer Key:
1(d), 2(a), 3(a), 4(a), 5(b), 6(b), 7(c), 8(d), 9(a), 10(a), 11(c), 12(c),
13(d), 14(c), 15(a)]
Question no2 anwser you giving wrong it includes all if the above
ReplyDeleteI was also confused with answer of q2
DeleteSame hEre
DeleteNo... Q2 is right as the fact is that the debit the receiver and credit the giver not debit is receiver ..... So this options and answer both is correct
Deletetqs sir
ReplyDeleteThank you...
ReplyDeleteqtn no. 3 4 & 5?
ReplyDeleteAny one can give me explanation of these qtns
First you read the chapter Books of original entry - special purpose subsidiary books.
Deletethen you can understand the question 3,4,5.
Thanku for helping to prepare in exam
ReplyDeleteFirst you read the chapter Books of original entry - special purpose subsidiary books.
ReplyDeletethen you can understand the question 3,4,5.
thank you for helping this quiz
ReplyDelete