Subsidiary Books – MCQs

Q1. Which of the following is not a subsidiary book?
A. Purchase Book
B. Sales Book
C. Journal Proper
D. Trial Balance
Answer: D. Trial Balance

Q2. Cash Book is a type of:
A. Ledger
B. Subsidiary Book
C. Journal Proper
D. Memorandum Book
Answer: B. Subsidiary Book

Q3. The purchase return book is used to record:
A. All purchases
B. Return of goods sold
C. Return of goods purchased on credit
D. Return of fixed assets
Answer: C. Return of goods purchased on credit

Q4. In the sales book, we record:
A. All types of sales
B. Only credit sales of goods
C. Only cash sales
D. Credit sale of assets
Answer: B. Only credit sales of goods

Q5. What is recorded in the journal proper?
A. Opening entries
B. Closing entries
C. Rectification entries
D. All of the above
Answer: D. All of the above

Q6. Which of the following is recorded in the cash book?
A. Credit sales
B. Purchase of machinery on credit
C. Payment of wages in cash
D. Purchase returns
Answer: C. Payment of wages in cash

Q7. Petty Cash Book is maintained to:
A. Record all transactions
B. Record large transactions
C. Record minor and frequent expenses
D. Record credit purchases
Answer: C. Record minor and frequent expenses

Q8. The main purpose of using subsidiary books is to:
A. Avoid errors
B. Provide more security
C. Divide work and improve efficiency
D. Maintain secrecy
 Answer: C. Divide work and improve efficiency

Q9. Which book is used to record credit purchases of goods?
A. Sales Book
B. Purchases Book
C. Journal Proper
D. Cash Book
Answer: B. Purchases Book

Q10. Which of the following is recorded in the Sales Return Book?
A. Return of fixed assets
B. Return of cash sales
C. Return of goods sold on credit
D. Return of credit purchases
Answer: C. Return of goods sold on credit

Q11. Which subsidiary book is used for non-routine journal entries?
A. Sales Book
B. Journal Proper
C. Petty Cash Book
D. Purchases Book
Answer: B. Journal Proper

Q12. Contra entries are recorded in:
A. Sales Book
B. Cash Book
C. Purchases Return Book
D. Petty Cash Book
Answer: B. Cash Book

Q13. Three-column Cash Book includes:
A. Cash, Bank, and Discounts
B. Purchases, Sales, and Discounts
C. Cash, Journal, and Ledger
D. Discounts, Returns, and Sales
Answer: A. Cash, Bank, and Discounts

Q14. Debit Note is issued by:
A. Buyer when goods are returned to the seller
B. Seller when goods are sold
C. Bank on dishonor of cheque
D. Purchaser when goods are purchased
Answer: A. Buyer when goods are returned to the seller

Q15. Credit Note is issued by:
A. Buyer
B. Seller on receiving returned goods
C. Transporter
D. Bank
Answer: B. Seller on receiving returned goods

Q16. Cash purchases are recorded in the:
A. Purchases Book
B. Cash Book
C. Journal Proper
D. Sales Book
Answer: B. Cash Book

Q17. Which book records all cash and bank transactions?
A. Journal Proper
B. Ledger
C. Three-column Cash Book
D. Sales Return Book
Answer: C. Three-column Cash Book

Q18. The book in which rectification entries are passed is:
A. Sales Book
B. Cash Book
C. Journal Proper
D. Purchases Book
Answer: C. Journal Proper

Q19. Which of the following is NOT recorded in the Purchases Return Book?
A. Return of goods purchased on credit
B. Return of goods purchased for cash
C. Return of defective goods purchased on credit
D. Return of excess goods purchased on credit
Answer: B. Return of goods purchased for cash

Q20. The Sales Book records:
A. Only cash sales
B. Only credit sales of goods
C. Both cash and credit sales
D. Only sales of fixed assets
Answer: B. Only credit sales of goods

Q21. When goods are returned by the buyer, which document is issued by the seller?
A. Debit Note
B. Credit Note
C. Invoice
D. Receipt
Answer: B. Credit Note

Q22. When goods are returned to the supplier, which document is issued by the buyer?
A. Credit Note
B. Invoice
C. Debit Note
D. Receipt
Answer: C. Debit Note

Q23. Which book is also called ‘Day Book’?
A. Journal Proper
B. Cash Book
C. Sales Book
D. Purchases Book
Answer: A. Journal Proper

Q24. Petty cash book is maintained for:
A. Large expenses
B. Small and routine expenses
C. Credit purchases
D. Credit sales
Answer: B. Small and routine expenses

Q25. The contra entry is recorded:
A. Only in Cash Book
B. Only in Journal Proper
C. In both Cash Book and Journal Proper
D. In Ledger
Answer: A. Only in Cash Book

Q26. In which book are cash sales recorded?
A. Sales Book
B. Purchases Book
C. Cash Book
D. Journal Proper
Answer: C. Cash Book

Q27. Which subsidiary book records credit purchases of goods?
A. Sales Book
B. Purchases Book
C. Cash Book
D. Journal Proper
Answer: B. Purchases Book

Q28. Which of the following books records transactions related to returns of goods purchased on credit?
A. Sales Return Book
B. Purchases Return Book
C. Cash Book
D. Journal Proper
Answer: B. Purchases Return Book

Q29. Which subsidiary book records transactions related to returns of goods sold on credit?
A. Purchases Return Book
B. Sales Return Book
C. Cash Book
D. Journal Proper
Answer: B. Sales Return Book

Q30. Which of the following is a feature of the three-column cash book?
A. It records only cash transactions
B. It records cash and bank transactions along with discounts
C. It records only credit transactions
D. It records only petty expenses
Answer: B. It records cash and bank transactions along with discounts

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