Q.1 Which of the following is the correct journal entry when cash is received from a debtor?
Cash A/c Dr. To Debtor A/c
Debtor A/c Dr. To Cash A/c
Capital A/c Dr. To Cash A/c
Sales A/c Dr. To Debtor A/c
Explanation - When cash is received from a debtor, cash increases (debit) and the debtor’s account decreases (credit).
Correct answer is: Cash A/c Dr. To Debtor A/c
Q.2 Purchase of goods on credit from Mr. A is recorded as:
Cash A/c Dr. To Purchases A/c
Purchases A/c Dr. To Mr. A
Mr. A Dr. To Purchases A/c
Purchases A/c Dr. To Cash A/c
Explanation - Purchases are debited and the creditor (Mr. A) is credited as liability increases.
Correct answer is: Purchases A/c Dr. To Mr. A
Q.3 Which account is debited when salary is paid in cash?
Cash A/c
Salary A/c
Capital A/c
Expense A/c
Explanation - Salary is an expense, and all expenses are debited, while cash goes out (credit).
Correct answer is: Salary A/c
Q.4 What is the journal entry for withdrawing cash for personal use?
Cash A/c Dr. To Drawings A/c
Drawings A/c Dr. To Cash A/c
Capital A/c Dr. To Cash A/c
Expenses A/c Dr. To Cash A/c
Explanation - Personal withdrawals reduce owner’s capital, so Drawings are debited, Cash credited.
Correct answer is: Drawings A/c Dr. To Cash A/c
Q.5 Goods sold on credit to Mr. B is recorded as:
Cash A/c Dr. To Sales A/c
Mr. B Dr. To Sales A/c
Sales A/c Dr. To Mr. B
Mr. B Dr. To Purchases A/c
Explanation - Debtor (Mr. B) increases and is debited, while sales is income, credited.
Correct answer is: Mr. B Dr. To Sales A/c
Q.6 Rent paid by cheque is recorded as:
Rent A/c Dr. To Cash A/c
Cash A/c Dr. To Rent A/c
Rent A/c Dr. To Bank A/c
Bank A/c Dr. To Rent A/c
Explanation - Rent (expense) is debited, and payment by cheque reduces bank balance (credit).
Correct answer is: Rent A/c Dr. To Bank A/c
Q.7 Capital introduced by the owner in the form of cash is recorded as:
Capital A/c Dr. To Cash A/c
Cash A/c Dr. To Capital A/c
Cash A/c Dr. To Owner A/c
Drawings A/c Dr. To Cash A/c
Explanation - Cash increases (debit) and Capital account (credit) reflects owner’s contribution.
Correct answer is: Cash A/c Dr. To Capital A/c
Q.8 Which journal entry is correct for goods returned to supplier?
Purchase Return A/c Dr. To Supplier A/c
Supplier A/c Dr. To Purchase Return A/c
Supplier A/c Dr. To Purchases A/c
Purchases A/c Dr. To Supplier A/c
Explanation - The creditor’s account decreases (debit), and Purchase Return reduces expenses (credit).
Correct answer is: Supplier A/c Dr. To Purchase Return A/c
Q.9 Goods purchased in cash is recorded as:
Cash A/c Dr. To Purchases A/c
Purchases A/c Dr. To Cash A/c
Purchases A/c Dr. To Bank A/c
Bank A/c Dr. To Purchases A/c
Explanation - Purchase of goods is debited, while cash decreases (credit).
Correct answer is: Purchases A/c Dr. To Cash A/c
Q.10 When commission received is entered, which account is credited?
Cash A/c
Commission A/c
Capital A/c
Commission Received A/c
Explanation - Incomes are credited, hence Commission Received A/c is credited.
Correct answer is: Commission Received A/c
Q.11 What is the journal entry for depreciation on machinery?
Machinery A/c Dr. To Depreciation A/c
Depreciation A/c Dr. To Machinery A/c
Depreciation A/c Dr. To Cash A/c
Cash A/c Dr. To Depreciation A/c
Explanation - Depreciation is an expense (debit) and reduces the value of machinery (credit).
Correct answer is: Depreciation A/c Dr. To Machinery A/c
Q.12 Which is correct when bad debts are written off?
Bad Debts A/c Dr. To Debtors A/c
Debtors A/c Dr. To Bad Debts A/c
Bad Debts A/c Dr. To Cash A/c
Cash A/c Dr. To Bad Debts A/c
Explanation - Bad debts are an expense (debit), and the debtor’s account is reduced (credit).
Correct answer is: Bad Debts A/c Dr. To Debtors A/c
Q.13 The journal entry for interest paid is:
Cash A/c Dr. To Interest A/c
Interest A/c Dr. To Cash A/c
Bank A/c Dr. To Interest A/c
Interest A/c Dr. To Bank A/c
Explanation - Interest is an expense (debit), and cash decreases (credit).
Correct answer is: Interest A/c Dr. To Cash A/c
Q.14 Which account is debited when stationery is purchased for office use?
Stationery A/c
Purchases A/c
Cash A/c
Capital A/c
Explanation - Stationery is treated as an expense, so it is debited, and cash is credited.
Correct answer is: Stationery A/c
Q.15 Advance rent received is credited to which account?
Cash A/c
Rent Received in Advance A/c
Capital A/c
Rent A/c
Explanation - Advance rent is a liability, so it is credited, while cash increases (debit).
Correct answer is: Rent Received in Advance A/c
Q.16 Insurance premium paid is recorded as:
Cash A/c Dr. To Insurance Premium A/c
Insurance Premium A/c Dr. To Cash A/c
Capital A/c Dr. To Insurance Premium A/c
Insurance Premium A/c Dr. To Bank A/c
Explanation - Insurance is an expense (debit), while cash decreases (credit).
Correct answer is: Insurance Premium A/c Dr. To Cash A/c
Q.17 What is the journal entry for interest received on bank deposit?
Bank A/c Dr. To Interest Received A/c
Interest A/c Dr. To Bank A/c
Interest Received A/c Dr. To Bank A/c
Cash A/c Dr. To Interest A/c
Explanation - Bank increases (debit) when money comes in, and interest income is credited.
Correct answer is: Bank A/c Dr. To Interest Received A/c
Q.18 When a debtor pays partly in cash and partly by cheque, which accounts are involved?
Cash, Bank, Debtor
Cash, Purchases, Debtor
Bank, Capital, Cash
Cash, Drawings, Bank
Explanation - Both cash and bank accounts are debited, and debtor account is credited.
Correct answer is: Cash, Bank, Debtor
Q.19 Which is the correct entry for goods taken by the owner for personal use?
Drawings A/c Dr. To Purchases A/c
Purchases A/c Dr. To Drawings A/c
Drawings A/c Dr. To Cash A/c
Capital A/c Dr. To Purchases A/c
Explanation - Goods taken for personal use reduces purchases, so Drawings is debited, Purchases credited.
Correct answer is: Drawings A/c Dr. To Purchases A/c
Q.20 When an asset is purchased on credit, which entry is passed?
Asset A/c Dr. To Cash A/c
Asset A/c Dr. To Creditor A/c
Creditor A/c Dr. To Asset A/c
Cash A/c Dr. To Asset A/c
Explanation - Asset increases (debit), liability to creditor increases (credit).
Correct answer is: Asset A/c Dr. To Creditor A/c
Q.21 When wages are paid in cash, the entry is:
Cash A/c Dr. To Wages A/c
Wages A/c Dr. To Cash A/c
Capital A/c Dr. To Wages A/c
Drawings A/c Dr. To Cash A/c
Explanation - Wages are expense (debit), cash reduces (credit).
Correct answer is: Wages A/c Dr. To Cash A/c
Q.22 What is the entry for receiving rent in cash?
Rent A/c Dr. To Cash A/c
Cash A/c Dr. To Rent A/c
Cash A/c Dr. To Rent Received A/c
Rent Received A/c Dr. To Cash A/c
Explanation - Cash increases (debit), rent income credited.
Correct answer is: Cash A/c Dr. To Rent Received A/c
Q.23 When a bill is accepted, which account is credited?
Bills Payable A/c
Bills Receivable A/c
Debtor A/c
Bank A/c
Explanation - On acceptance, liability increases, so Bills Payable is credited.
Correct answer is: Bills Payable A/c
Q.24 Which is the entry for goods sold for cash?
Cash A/c Dr. To Sales A/c
Sales A/c Dr. To Cash A/c
Cash A/c Dr. To Purchases A/c
Purchases A/c Dr. To Cash A/c
Explanation - Cash increases (debit), sales are credited.
Correct answer is: Cash A/c Dr. To Sales A/c