Chapter recording-of-transactions-i: Recording of Transactions - I Assertion-Reason Questions | accountancy Class 11 CBSE

Chapter recording-of-transactions-i: Recording of Transactions - I Assertion-Reason Questions | accountancy Class 11 CBSE | ByteNotes.in

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 1

Logic Check

Assertion (A): The accounting equation (A = L + C) always remains balanced after every transaction. Reason (R): Every transaction has a dual aspect — it affects at least two accounts with equal debits and credits.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 2

Logic Check

Assertion (A): Source documents are preserved even after recording in books of account. Reason (R): Source documents serve as evidence during audit and tax assessments.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 3

Logic Check

Assertion (A): The journal is called the Principal Book of Entry. Reason (R): The journal records transactions for the first time in chronological order.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 4

Logic Check

Assertion (A): An increase in capital is credited. Reason (R): Capital and liabilities follow the same rules of debit and credit because both represent claims against the assets of the business.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 5

Logic Check

Assertion (A): When goods are given as charity, the Charity Account is debited and Purchases Account is credited. Reason (R): Charity reduces purchases and hence the purchases account must be debited.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 6

Logic Check

Assertion (A): The Ledger Folio column in the journal is filled at the time of making the journal entry. Reason (R): The L.F. number provides a cross-reference between the journal and the ledger.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 7

Logic Check

Assertion (A): Drawings by the proprietor reduce both assets and capital simultaneously. Reason (R): Drawings are personal withdrawals from the business and reduce the owner's investment.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 8

Logic Check

Assertion (A): A compound journal entry involves two accounts — one debit and one credit. Reason (R): When a transaction affects more than two accounts, a compound entry is made.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 9

Logic Check

Assertion (A): CGST and SGST are charged on inter-state supply of goods. Reason (R): For intra-state transactions, both CGST and SGST are levied by the Central and State Government respectively.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 10

Logic Check

Assertion (A): Increase in assets is recorded on the debit side of the account. Reason (R): In a T-account, the left side is called the debit side.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 11

Logic Check

Assertion (A): Outstanding salary is a liability for the business. Reason (R): Outstanding salary is the amount of salary earned by employees but not yet paid, representing an obligation of the business.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 12

Logic Check

Assertion (A): Sales account is credited when goods are sold. Reason (R): Sales is a revenue and increase in revenue is credited according to the rules of debit and credit.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 13

Logic Check

Assertion (A): The cash book is a part of the journal. Reason (R): The cash book records only cash and bank transactions and is a book of original entry.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 14

Logic Check

Assertion (A): When goods are purchased for cash, the Purchases Account is debited and Cash Account is credited. Reason (R): Purchases represent an expense; increase in expense is debited and decrease in cash (asset) is credited.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 15

Logic Check

Assertion (A): The balance sheet is also known as the accounting equation. Reason (R): Both the balance sheet and accounting equation show that assets are always equal to liabilities plus capital.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 16

Logic Check

Assertion (A): Input CGST paid on purchases can be set off against Output CGST collected on sales. Reason (R): Input tax credit reduces the effective tax burden on the trader.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 17

Logic Check

Assertion (A): A debit entry in a liability account signifies an increase in liability. Reason (R): Liabilities follow the rule: increase is debited and decrease is credited.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 18

Logic Check

Assertion (A): A narration is written after every journal entry. Reason (R): Narration provides a brief explanation of the transaction and helps in future verification of entries.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 19

Logic Check

Assertion (A): Depositing cash into the bank does not affect the capital of the business. Reason (R): Depositing cash into the bank is an intra-asset transaction where one asset (cash) decreases and another asset (bank) increases by equal amounts.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 20

Logic Check

Assertion (A): Every business transaction must be first recorded in the ledger. Reason (R): The journal is the book of original entry where transactions are first recorded, and then posted to the ledger.

Reasoning Options

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Chapter recording-of-transactions-i: Recording of Transactions - I | Assertion-Reason

Assertion (A): The accounting equation (A = L + C) always remains balanced after every transaction. Reason (R): Every transaction has a dual aspect — it affects at least two accounts with equal debits and credits.

Assertion (A): Source documents are preserved even after recording in books of account. Reason (R): Source documents serve as evidence during audit and tax assessments.

Assertion (A): The journal is called the Principal Book of Entry. Reason (R): The journal records transactions for the first time in chronological order.

Assertion (A): An increase in capital is credited. Reason (R): Capital and liabilities follow the same rules of debit and credit because both represent claims against the assets of the business.

Assertion (A): When goods are given as charity, the Charity Account is debited and Purchases Account is credited. Reason (R): Charity reduces purchases and hence the purchases account must be debited.

Assertion (A): The Ledger Folio column in the journal is filled at the time of making the journal entry. Reason (R): The L.F. number provides a cross-reference between the journal and the ledger.

Assertion (A): Drawings by the proprietor reduce both assets and capital simultaneously. Reason (R): Drawings are personal withdrawals from the business and reduce the owner's investment.

Assertion (A): A compound journal entry involves two accounts — one debit and one credit. Reason (R): When a transaction affects more than two accounts, a compound entry is made.

Assertion (A): CGST and SGST are charged on inter-state supply of goods. Reason (R): For intra-state transactions, both CGST and SGST are levied by the Central and State Government respectively.

Assertion (A): Increase in assets is recorded on the debit side of the account. Reason (R): In a T-account, the left side is called the debit side.

Assertion (A): Outstanding salary is a liability for the business. Reason (R): Outstanding salary is the amount of salary earned by employees but not yet paid, representing an obligation of the business.

Assertion (A): Sales account is credited when goods are sold. Reason (R): Sales is a revenue and increase in revenue is credited according to the rules of debit and credit.

Assertion (A): The cash book is a part of the journal. Reason (R): The cash book records only cash and bank transactions and is a book of original entry.

Assertion (A): When goods are purchased for cash, the Purchases Account is debited and Cash Account is credited. Reason (R): Purchases represent an expense; increase in expense is debited and decrease in cash (asset) is credited.

Assertion (A): The balance sheet is also known as the accounting equation. Reason (R): Both the balance sheet and accounting equation show that assets are always equal to liabilities plus capital.

Assertion (A): Input CGST paid on purchases can be set off against Output CGST collected on sales. Reason (R): Input tax credit reduces the effective tax burden on the trader.

Assertion (A): A debit entry in a liability account signifies an increase in liability. Reason (R): Liabilities follow the rule: increase is debited and decrease is credited.

Assertion (A): A narration is written after every journal entry. Reason (R): Narration provides a brief explanation of the transaction and helps in future verification of entries.

Assertion (A): Depositing cash into the bank does not affect the capital of the business. Reason (R): Depositing cash into the bank is an intra-asset transaction where one asset (cash) decreases and another asset (bank) increases by equal amounts.

Assertion (A): Every business transaction must be first recorded in the ledger. Reason (R): The journal is the book of original entry where transactions are first recorded, and then posted to the ledger.

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