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Class 11 Commerce Recordingtransactions — practice questions

Explore 4 free Recordingtransactions questions in Class 11 Commerce Accountancy. Open each question or exercise to read its content, reference answers and available explanation.

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Recordingtransactions questions and exercises with answers

Showing questions 1–4 of 4.

The accounting equation isRead the answer and worked solution →A business introduces ₹50,000 cash as capital. The effect on the accounting equation isRead the answer and worked solution →Under the modern rules, an increase in a liability is recorded as aRead the answer and worked solution →The process of transferring journal entries to individual accounts is calledRead the answer and worked solution →

Worked practice questions

The accounting equation is

  1. Assets = Liabilities + Capital
  2. Assets + Capital = Liabilities
  3. Capital = Assets + Liabilities
  4. Assets = Capital − Liabilities
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Correct answer: A. Assets = Liabilities + Capital

Assets = Liabilities + Capital — the foundation of the dual-aspect (double-entry) system.

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A business introduces ₹50,000 cash as capital. The effect on the accounting equation is

  1. Capital +50,000 only
  2. Assets unchanged
  3. Cash +50,000 and Liabilities +50,000
  4. Cash (asset) +50,000 and Capital +50,000
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Correct answer: D. Cash (asset) +50,000 and Capital +50,000

Capital introduced increases the asset Cash by 50,000 and increases Capital by 50,000 — both sides of the equation rise equally.

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Under the modern rules, an increase in a liability is recorded as a

  1. contra
  2. debit
  3. credit
  4. no entry
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Correct answer: C. credit

Liabilities increase on the credit side under modern (accounting-equation-based) rules.

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