📘 DOUBLE ENTRY SYSTEM – 100 MCQs
Q1. Double entry system means:
A. One entry
B. Two aspects of each transaction
C. Three entries
D. No entry
Q2. (T/F) Every transaction has two effects.
Q3. Debit entry is recorded on:
A. Left side
B. Right side
C. Top
D. Bottom
Q4. Credit entry is recorded on:
A. Left
B. Right
C. Middle
D. None
Q5. Total debit must be:
A. Greater
B. Less
C. Equal to credit
D. Ignored
Q6. (Fill) Double entry system ensures ______ of accounts.
Q7. Cash received from Ram:
A. Cash Dr, Ram Cr
B. Ram Dr, Cash Cr
C. Cash Cr
D. None
Q8. (T/F) Debit always means increase.
Q9. Credit purchase affects:
A. One account
B. Two accounts
C. Three
D. None
Q10. Double entry system was developed in:
A. India
B. Italy
C. USA
D. China
Q11. (Fill) The giver is ______.
Q12. Cash paid reduces:
A. Asset
B. Liability
C. Income
D. Capital
Q13. Sale of goods increases:
A. Expense
B. Income
C. Liability
D. Asset
Q14. (T/F) Both accounts in a transaction cannot be debited.
Q15. Business receives cash:
A. Cash Dr
B. Cash Cr
C. Capital Dr
D. None
Q16. Payment to creditor:
A. Creditor Dr
B. Cash Cr
C. Both
D. None
Q17. (Fill) Every debit has a corresponding ______.
Q18. Credit side shows:
A. Decrease in asset
B. Increase in expense
C. Increase in asset
D. None
Q19. (T/F) Double entry system helps detect errors.
Q20. Purchase of furniture for cash:
A. Furniture Dr
B. Cash Cr
C. Both
D. None
Q21. Which ensures equality?
A. Journal
B. Ledger
C. Trial balance
D. Cash book
Q22. (Fill) Two accounts are ______ and ______.
Q23. Which account is debited?
A. Giver
B. Receiver
C. Owner
D. Creditor
Q24. (T/F) Cash account is always debited when cash comes in.
Q25. Which is correct?
A. Debit = Credit
B. Debit ≠ Credit
C. Only debit matters
D. Only credit matters
Q26. If goods sold on credit:
A. Sales Dr
B. Debtor Dr
C. Cash Dr
D. None
Q27. (T/F) Double entry system records only cash transactions.
Q28. Purchase of asset on credit:
A. Asset Dr, Creditor Cr
B. Cash Dr
C. Purchase Dr
D. None
Q29. (Fill) Double entry system is based on ______ concept.
Q30. If capital introduced:
A. Cash Dr
B. Capital Cr
C. Both
D. None
Q31. Payment of salary:
A. Salary Dr
B. Cash Cr
C. Both
D. None
Q32. (T/F) One transaction may affect more than two accounts.
Q33. Which is not recorded?
A. Transaction
B. Event
C. Non-monetary
D. Financial
Q34. Goods withdrawn for personal use:
A. Drawings Dr
B. Purchase Cr
C. Both
D. None
Q35. (Fill) Trial balance checks ______.
Q36. Which error is detected?
A. Wrong total
B. Omission
C. Principle
D. Compensating
Q37. (T/F) Equal trial balance means no error.
Q38. Payment to supplier:
A. Supplier Dr
B. Cash Cr
C. Both
D. None
Q39. Which side increases liability?
A. Debit
B. Credit
C. Both
D. None
Q40. (Fill) Debit the ______, credit the giver.
Q41. Return of goods by customer:
A. Sales return Dr
B. Debtor Cr
C. Both
D. None
Q42. (T/F) Double entry system provides complete record.
Q43. Which account is credited?
A. Expense
B. Asset
C. Income
D. Loss
Q44. Purchase return:
A. Creditor Dr
B. Purchase return Cr
C. Both
D. None
Q45. (Fill) Assets increase on ______ side.
Q46. Which ensures arithmetical accuracy?
A. Ledger
B. Trial balance
C. Journal
D. Cash book
Q47. Increase in expense:
A. Debit
B. Credit
C. None
D. Both
Q48. (T/F) Capital decreases on debit.
Q49. Loan taken:
A. Cash Dr
B. Loan Cr
C. Both
D. None
Q50. Drawings affect:
A. Capital
B. Asset
C. Both
D. None
Q51. Trial balance tallies but error exists, type:
A. Principle error
B. Casting error
C. Posting error
D. None
Q52. (T/F) Compensating errors do not affect trial balance.
Q53. Goods destroyed by fire:
A. Loss Dr
B. Purchase Cr
C. Both
D. None
Q54. Bad debts written off:
A. Bad debts Dr
B. Debtor Cr
C. Both
D. None
Q55. (Fill) Double entry is based on ______ equality.
Q56. Outstanding expense:
A. Expense Dr
B. Liability Cr
C. Both
D. None
Q57. Accrued income:
A. Asset Dr
B. Income Cr
C. Both
D. None
Q58. (T/F) All errors affect trial balance.
Q59. Depreciation entry:
A. Depreciation Dr
B. Asset Cr
C. Both
D. None
Q60. Discount allowed:
A. Expense
B. Income
C. Asset
D. Liability
Q61. Goods purchased but not recorded:
A. Error of omission
B. Commission
C. Principle
D. None
Q62. (T/F) Double entry system is scientific.
Q63. If wrong account debited:
A. Principle error
B. Omission
C. Compensating
D. None
Q64. (Fill) Debit and credit are ______ sides.
Q65. Increase in capital:
A. Debit
B. Credit
C. None
D. Both
📘 FINAL ANSWER KEY (1–100)
1–25:
1-B, 2-T, 3-A, 4-B, 5-C, 6-Accuracy, 7-A, 8-F, 9-B, 10-B,
11-Credited, 12-A, 13-B, 14-T, 15-A, 16-C, 17-Credit,
18-A, 19-T, 20-C, 21-C, 22-Debit & Credit, 23-B, 24-T, 25-A
26–50:
26-B, 27-F, 28-A, 29-Dual aspect, 30-C,
31-C, 32-T, 33-C, 34-C, 35-Accuracy,
36-A, 37-F, 38-C, 39-B, 40-Receiver,
41-C, 42-T, 43-C, 44-C, 45-Debit,
46-B, 47-A, 48-T, 49-C, 50-C
51–65:
51-A, 52-T, 53-C, 54-C, 55-Arithmetic,
56-C, 57-C, 58-F, 59-C, 60-A,
61-A, 62-T, 63-A, 64-Opposite, 65-B
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