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

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 1

Logic Check

Assertion (A): The cash book serves the purpose of both a journal and a ledger cash account. Reason (R): All cash transactions are first recorded in the cash book, and no separate cash account is maintained in the ledger when a cash book is kept.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 2

Logic Check

Assertion (A): Contra entries in the double column cash book are not posted to the ledger. Reason (R): Contra entries represent transactions between the cash column and the bank column within the same cash book, and both aspects are already recorded in the cash book itself.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 3

Logic Check

Assertion (A): Trade discount is recorded separately in the purchases journal. Reason (R): Trade discount is a reduction in the list price and is always shown as a separate line in the subsidiary books.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 4

Logic Check

Assertion (A): The petty cashier receives reimbursement equal to the amount spent during the period under the imprest system. Reason (R): The purpose of the imprest system is to maintain the petty cash fund at a constant level at the beginning of each period.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 5

Logic Check

Assertion (A): The single column cash book always shows a debit balance. Reason (R): Cash payments in a period can exceed the total of opening cash balance and cash receipts.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 6

Logic Check

Assertion (A): Credit purchases of machinery are recorded in the purchases journal. Reason (R): The purchases journal is used to record all credit purchases, regardless of whether they are goods for resale or fixed assets.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 7

Logic Check

Assertion (A): The debit note is the source document for recording entries in the purchases return journal. Reason (R): A debit note is prepared by the buyer when goods are returned to the supplier, evidencing the reduction in the amount owed to that supplier.

Reasoning Options

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Assertion-Reason

Hard difficulty • Check the statement and reason

Hard

Question 8

Logic Check

Assertion (A): The bank column of the double column cash book can show a credit balance. Reason (R): A credit balance in the bank column arises when the amount deposited in the bank exceeds the total withdrawals during the period.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 9

Logic Check

Assertion (A): When a cash book is maintained, a separate cash account is not required in the ledger. Reason (R): The cash book itself functions as both the book of original entry and the ledger account for cash transactions.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 10

Logic Check

Assertion (A): The credit note is issued by the seller to the buyer when goods are returned. Reason (R): A credit note is the source document for recording entries in the purchases return journal of the seller.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 11

Logic Check

Assertion (A): The total of the sales journal is posted to the credit of the Sales Account in the ledger. Reason (R): Credit sales increase the Sales Account, which is a nominal account with a credit balance.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 12

Logic Check

Assertion (A): Petty cash book has multiple amount columns on the payment side. Reason (R): Separate columns for each type of petty expense facilitate easy posting of totals to respective ledger accounts and save time.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 13

Logic Check

Assertion (A): IGST is levied on intra-state transactions in India. Reason (R): IGST stands for Integrated Goods and Services Tax and is administered by the central government.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 14

Logic Check

Assertion (A): The journal proper is used to record transactions that cannot be entered in any special purpose subsidiary book. Reason (R): The journal proper is one of the subsidiary books maintained alongside other special purpose books in an expanded accounting system.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 15

Logic Check

Assertion (A): When goods are returned to a supplier, the supplier's account is debited in the buyer's ledger. Reason (R): Returning goods to a supplier reduces the liability of the buyer towards that supplier, which is shown by debiting the supplier's account.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 16

Logic Check

Assertion (A): Cash purchases of goods are recorded in the purchases journal. Reason (R): The purchases journal only records credit purchases of goods; all cash transactions are recorded in the cash book.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 17

Logic Check

Assertion (A): An A/c Payee Only crossed cheque provides the highest level of safety against misuse. Reason (R): With an A/c Payee Only crossing, payment can only be credited to the bank account of the named payee, preventing encashment by any unauthorised person.

Reasoning Options

ByteNotes

Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 18

Logic Check

Assertion (A): Separate subsidiary books enable division of labour in the accounting department. Reason (R): Different clerks can maintain different subsidiary books simultaneously, speeding up the recording process.

Reasoning Options

ByteNotes

Assertion-Reason

Hard difficulty • Check the statement and reason

Hard

Question 19

Logic Check

Assertion (A): When a cheque is received and deposited into the bank on the same day, it is recorded in the cash column of the double column cash book. Reason (R): A cheque received and immediately deposited should be treated as a bank transaction and recorded in the bank column on the debit side.

Reasoning Options

ByteNotes

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 20

Logic Check

Assertion (A): The petty cash account in the ledger will show the actual cash held by the petty cashier at any point in time. Reason (R): The petty cash account is debited with the imprest amount given and credited with the total expenses incurred, leaving a balance equal to the cash remaining with the petty cashier.

Reasoning Options

ByteNotes

Chapter sections

Chapter recording-of-transactions-ii: Recording of Transactions - II | Assertion-Reason

Assertion (A): The cash book serves the purpose of both a journal and a ledger cash account. Reason (R): All cash transactions are first recorded in the cash book, and no separate cash account is maintained in the ledger when a cash book is kept.

Assertion (A): Contra entries in the double column cash book are not posted to the ledger. Reason (R): Contra entries represent transactions between the cash column and the bank column within the same cash book, and both aspects are already recorded in the cash book itself.

Assertion (A): Trade discount is recorded separately in the purchases journal. Reason (R): Trade discount is a reduction in the list price and is always shown as a separate line in the subsidiary books.

Assertion (A): The petty cashier receives reimbursement equal to the amount spent during the period under the imprest system. Reason (R): The purpose of the imprest system is to maintain the petty cash fund at a constant level at the beginning of each period.

Assertion (A): The single column cash book always shows a debit balance. Reason (R): Cash payments in a period can exceed the total of opening cash balance and cash receipts.

Assertion (A): Credit purchases of machinery are recorded in the purchases journal. Reason (R): The purchases journal is used to record all credit purchases, regardless of whether they are goods for resale or fixed assets.

Assertion (A): The debit note is the source document for recording entries in the purchases return journal. Reason (R): A debit note is prepared by the buyer when goods are returned to the supplier, evidencing the reduction in the amount owed to that supplier.

Assertion (A): The bank column of the double column cash book can show a credit balance. Reason (R): A credit balance in the bank column arises when the amount deposited in the bank exceeds the total withdrawals during the period.

Assertion (A): When a cash book is maintained, a separate cash account is not required in the ledger. Reason (R): The cash book itself functions as both the book of original entry and the ledger account for cash transactions.

Assertion (A): The credit note is issued by the seller to the buyer when goods are returned. Reason (R): A credit note is the source document for recording entries in the purchases return journal of the seller.

Assertion (A): The total of the sales journal is posted to the credit of the Sales Account in the ledger. Reason (R): Credit sales increase the Sales Account, which is a nominal account with a credit balance.

Assertion (A): Petty cash book has multiple amount columns on the payment side. Reason (R): Separate columns for each type of petty expense facilitate easy posting of totals to respective ledger accounts and save time.

Assertion (A): IGST is levied on intra-state transactions in India. Reason (R): IGST stands for Integrated Goods and Services Tax and is administered by the central government.

Assertion (A): The journal proper is used to record transactions that cannot be entered in any special purpose subsidiary book. Reason (R): The journal proper is one of the subsidiary books maintained alongside other special purpose books in an expanded accounting system.

Assertion (A): When goods are returned to a supplier, the supplier's account is debited in the buyer's ledger. Reason (R): Returning goods to a supplier reduces the liability of the buyer towards that supplier, which is shown by debiting the supplier's account.

Assertion (A): Cash purchases of goods are recorded in the purchases journal. Reason (R): The purchases journal only records credit purchases of goods; all cash transactions are recorded in the cash book.

Assertion (A): An A/c Payee Only crossed cheque provides the highest level of safety against misuse. Reason (R): With an A/c Payee Only crossing, payment can only be credited to the bank account of the named payee, preventing encashment by any unauthorised person.

Assertion (A): Separate subsidiary books enable division of labour in the accounting department. Reason (R): Different clerks can maintain different subsidiary books simultaneously, speeding up the recording process.

Assertion (A): When a cheque is received and deposited into the bank on the same day, it is recorded in the cash column of the double column cash book. Reason (R): A cheque received and immediately deposited should be treated as a bank transaction and recorded in the bank column on the debit side.

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