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Multiple choice questions:

Click the option to find answer:
Double entry book keeping is a system of recording transactions that recognizes that there are
• Two sides to every event
• Double sides to every event
• Two aspects to every transaction
• None of the above

Which one of the following is correct statement?
• Purchase book is a primary book
• Purchase book is a secondary book
• Trial balance is an account
• Double entry system is an unscientific method

A trader withdraws money from business cash account for personal expenses. Which entries record this in his books?
• Bank a/c...Dr and Capital a/c...Cr
• Drawings a/c …Dr and Cash a/c… Cr
• Drawings a/c…Dr and Bank a/c…Cr
• Capital a/c … Dr and Cash a/c…Cr

Returned goods to supplier and received a refund. Which entry records this?
• Bank a/c…Dr and Purchase return a/c…Cr
• Purchase a/c…Dr and Bank a/c …Cr
• Bank a/c …Dr and Sales a/c …Cr
• Purchase return a/c …Dr and Bank a/c …Cr

Cheques deposited dishonored. Which entries record this?
• Bank a/c…Dr and Creditors a/c Cr
• Debtors a/c…Dr and Cash a/c…Cr
• Debtors a/c…Dr and Creditors a/c …Cr
• Debtors a/c …Dr and Bank a/c …Cr



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