MCQ for CA Foundation Accounting Chapter 2 ACCOUNTING PROCESS

Sample Multiple Choice Questions (MCQ's) for CA Foundation - Paper 1 - Principal and Practice of Accounting - Chapter 2 ACCOUNTING PROCESS - For Practice relevant for Dec 22 and May/June 23 Examinations

Q:1  A Ltd. has a Rs 35,000 account receivable from Mohan. On January 20, Mohan makes a partial payment of Rs 21,000 to A Ltd. The journal entry made on January 20 by A Ltd. to record this transaction includes:

  1. A credit to the cash received account of Rs 21,000
  2. A credit to the Accounts receivable account of Rs 21,000.
  3. A debit to the cash account of Rs 14,000.

Answer: 2

Q:2  At the end of the accounting year all the nominal accounts of the ledger book are

  1. Balanced but not transferred to profit and loss account
  2. Not balanced and also the balance is not transferred to the profit and loss account
  3. Not balanced and their balance is transferred to the profit and loss account.

Answer: 3



Account heads

Debit (Rs)











Miscellaneous expenses 











The difference in trial balance is due to _____________

  1. Wrong placing of sales account
  2. Wrong placing of salaries account
  3. Wrong placing of miscellaneous expenses amount

Answer: 2

Q:4 In which book of original entry, will you record a bills receivable of Rs1,000, which was received from a debtor in full settlement for a claim of Rs1,100, is dishonoured ____________________.

  1. Purchases Return Book
  2. Bills Receivable Book
  3. Journal Proper (General Journal)

Answer: 3

Q:5 The total of discounts column on the debit side of the cash book, recording cash discount deducted by customers when paying their accounts, is posted to the __________________________

  1. Credit of the discount allowed account.
  2. Debit of the discount allowed account
  3. Credit of the discount received account.

Answer: 2

Q:6 If a purchase return of Rs1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of the

  1. Trial balance would show the debit side to be Rs1,000 more than the credit.
  2. Trial balance would show the credit side to be Rs 1,000 more than the debit.
  3. The debit side of the trial balance will be Rs 2,000 more than the credit side.

Answer: 3


CA Foundation Accounting MCQ for Chapter 3  - Click Here

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