MCQExams
0:0:1
CBSE
JEE
NTSE
NEET
Practice
Homework
×
CBSE Questions for Class 9 Elements Of Book Keeping And Accountancy Recording And Posting Of Cash Transactions Quiz 2 - MCQExams.com
CBSE
Class 9 Elements Of Book Keeping And Accountancy
Recording And Posting Of Cash Transactions
Quiz 2
In double column cash book, one is for cash and other is the ___________ column.
Report Question
0%
Credit
0%
Bank
0%
Discount
0%
All of the above
Explanation
Cash book with cash and bank column has one additional column on the receipt and payment side along with cash column which is the bank column. Only bank transaction are recorded in this column.
Cash book is a _______( journal).
Report Question
0%
Subsidiary
0%
Purchase
0%
Sales
0%
Purchase and Sales Return
Explanation
A
cash book is a subsidiary
to the general ledger in which all
cash
transactions during a period are recorded.
Cash book records transactions relating to receipts and payments.
Report Question
0%
True
0%
False
Explanation
Cash book
is a
book
in which all
transactions relating
to
cash receipts
and
cash payments
are recorded. It starts with the
cash
or bank balances at the beginning of the period. Generally, it is made on monthly basis.
Cash received in entered on the debit side of cash book.
Report Question
0%
True
0%
False
Explanation
The recording of transactions in the
cash book
takes the shape of a ledger account. R
eceipts
of
cash
are
entered on the debit side
and
cash
payments on the credit
side
, there is no need of
cash
account in the ledger
books
of a firm.
Amount of discount deducted from invoice price is called a __________.
Report Question
0%
cash discount
0%
trade discount
0%
quality discount
0%
all of the above
Explanation
Discount is the deduction in the price of the goods sold. It is offered in two ways. Offering deduction of agreed percentage of list price at the time of selling goods is one way of giving discount. Such discount is called as "Trade Discount".
Person who maintains petty cash book __________.
Report Question
0%
Cashier
0%
Petty maintainer
0%
Petty cashier
0%
None of the above
Explanation
The petty cash book is a formal summarization of petty cash expenditures, sorted by date. In most cases, the petty cash book is an actual ledger book, rather than a computer record. Thus, the book is part of a manual record-keeping system.
A petty cashier is a person who is appointed or who is authorized to make payments of petty cash expenses and record them in the petty cash book. Petty cash expenses include small payments, such as postage, conveyance, etc. that are very small in amount but occur very frequently in business.
Cash column of cash book can never have _______ balance.
Report Question
0%
Credit
0%
Debit
0%
Zero
0%
None of the above
Explanation
Cash book is a book in which all transactions relating to cash receipts and cash payments are recorded. It starts with the cash or bank balances at the beginning of the period.
On the left side, all-cash transactions relating to cash receipts (debits), and on the right side all transactions relating to cash payments (credits) are entered date wise. When a cash book is maintained, a separate cash book in the ledger is not opened.
The cash book is balanced in the same way as an account in the ledger. But it may be noted that in the case of the cash book, there will be always a debit balance because cash payments can never exceed cash receipts and cash in hand at the beginning of the period.
Imprest system of Petty Cash book is system in which head cashier first estimates the total petty expenses of a particular period say month or fortnight and estimated amount is given to petty cashier in advance to meet petty expenses of particular period.
Report Question
0%
True
0%
False
Explanation
Under imprest system, a round sum of money estimated are necessary for the possible needs of the business to meet petty expenses for the week or fortnight is handed over to the Petty Cashier. At the end of the fixed period or earlier, when petty cashier needs further cash, he submits the petty cash book, along with vouchers.
The Chief Cashier examines the cash book with the vouchers. Then, Chief Cashier gives money/cheques for the exact amount, which he actually spent during the period. Thus, he starts for the next period with the same sum as held previously. That is, the petty cashier will have again the fixed sum in the beginning of the next period. This system is known as Imprest System of Petty Cash Book.
Cash book in which the payment side is ruled in suitable columns is ____________.
Report Question
0%
Petty cash book
0%
Imprest cash book
0%
Analytical cash book
0%
None of the above
Explanation
Petty cash book in which the payment side is ruled in suitable columns is called as Analytical Petty Cash Book. In this type of petty cash book, on the payment (credit) side, a separate column is provided for each class of common expenses. The number of column depends on the nature of business and type of expenses. A small business will need lessee columns and a large business needs more columns. Expenses that cannot be designated to any class of expenses are entered in the column named sundry expenses.
State true of false :
Cash discount is not recorded in the books of accounts.
Report Question
0%
True
0%
False
Explanation
A cash discount is a deduction allowed by the seller of goods or by the provider of services in order to motivate the customers to pay with in a specified time. This discount should definitely be recorded in the books of accounts as this involves accounting terms.
An allowance given by receiver of the cash to the giver of cash at the time of payment is known as _____________ .
Report Question
0%
Cash Discount
0%
Credit Discount
0%
Trade Discount
0%
Quality Discount
Explanation
Discount is the deduction in the price of the goods sold. It is offered in two ways. Offering deduction of agreed percentage of list price at the time of selling goods is one way of giving discount. Such discount is called 'trade discount'. It is generally offered by manufacturers to whole sellers and by whole sellers to retailers. After selling the goods on credit basis the debtors may be given certain deduction in amount due in case if they pay the amount within the stipulated period or earlier. This deduction is given at the time of payment on the amount payable. Hence, it is called as cash discount. Cash discount acts as an incentive that encourages prompt payment by the debtors.
Entry which is to be recorded on the receipt side as well as payment side of cash book _____________.
Report Question
0%
Adjustment entry
0%
No entry
0%
Contra entry
0%
Transfer entry
Explanation
When there is a transaction that relates to both cash and bank, this will be written on one side of bank column and on other side of cash column. Such transactions are known as "Contra entries". In case cash is withdrawn from bank for office use, its is entered on the credit side of bank column and also in the debit side of cash column of the cash book. In case cash is deposited in the bank, the amount is recorded on the debit side of bank column and on the credit side of cash column of the cash book. The letter "C" is written in the LF column on both sides against these entries. These entries are not to be posted into ledger.
Credit transactions are never recorded in cash book.
Report Question
0%
True
0%
False
Explanation
Cash book is a book in which all transactions relating to cash receipts and cash payments are recorded. It starts with the cash or bank balances at the beginning of the period. Generally, it is made on monthly basis. This is a very popular book and is maintained by all organisations, big or small, profit or not-for-profit. It serves the purpose of both the journal as well as the ledger account. It is also called the book of original entry.
A cash book records the transactions related to cash receipts and cash payments. Thus, it records only those transactions that involve cash inflows or outflows. Credit transactions are not recorded in the cash book as it does not involve any cash inflows or outflows.
Simple petty cash book is not very popular.
Report Question
0%
True
0%
False
Explanation
A simple petty cash book is one in which there is only one amount column on its both sides with common date and particular columns. The debit column is used for entering the balance of cash in hand of the petty cashier at the beginning of the period and the amount received from the head cashier. A simple petty cash book is identical to a cash book. Any cash that a petty cashier receives is recorded on the debit or receipts side and any cash that he pays is recorded on the credit or payments side. In this type of Cash book, all the expenses are recorded in one single column. Due to this, postings of all expenses to respective ledger accounts consume a lot of time. Hence, the Simple Petty Cash Book is not popular because separate columns for various expenses are not maintained.
Cash account/ book is prepared on ________.
Report Question
0%
Accrual Basis
0%
Receipt Basis
0%
Both Basis
0%
Either A or B
Explanation
Cash book prepared on receipt basis that it a transaction is recorded as when there is an inflow or outflow of cash
There are mainly 4 types of Cash Book
1. Single Column Cash Book
2. Double Column Cash Book
3. Three Column Cash Book
4. Petty Cash Book
A cheque received and deposited in the bank on the same day is recorded in the ______________.
Report Question
0%
Cash column of the cash book
0%
Bank column of the cash book
0%
Credited in the cash book
0%
Debited in the cash book.
Explanation
A cheque received and deposited in the bank on the same day is recorded in the
bank column of the cash book.
The Journal Entry for the same is
Bank a/c Dr.
To Cash a/c
(Being cheque deposited in bank)
Direct deposit made by customer into your bank is recorded on the ______ side of the cash book.
Report Question
0%
Payment
0%
Credit
0%
Receipt
0%
Both
Explanation
Cash book is a book in which all transaction relating to cash receipts and cash payments are recorded. It starts with the cash or bank balances at the beginning of the period. Generally, it is made on monthly basis. This is a very popular book and is maintained in all organisations, big or small, profit or not-for-profit. It serves the purpose of both journal as well as the ledger account. It is also called as the book of original entry. The left side of the cash book shows the receipts of the cash whereas the right side of the cash book shows all the payments made in cash. The accounts appearing on the debit side for the cash book are credited in the respective ledger accounts because cash has been received in respect of them. Direct deposit made by customer into your bank is recorded on the receipts side of the cash book.
A cash book is both a journal as well as ledger.
Report Question
0%
True
0%
False
Explanation
A cash book o both a journal as well as a ledger. The cash book is a journal because it records the cash transactions from the source document for the first time and then these are posted in the respective ledger accounts. The cash book is a ledger in the sense that it serves the purpose of a cash account also. Wen the cash book is prepared, the Cash A/c is not required to be prepared. Thus, the cash book serves the purpose of a subsidiary book as well as the principal book.
Total of payments side can be greater than total of receipts side in case of bank column.
Report Question
0%
True
0%
False
Explanation
usually, the debit side bank column is always bigger than the credit side bank column. The difference will mean so much balance at the bank. But sometimes a bank allows a person an Overdraft (OD) i.e., he can draw more than he has deposited. In such a case, the credit side bank column will total more than the debit side bank column. When the total of the payments side exceeds the total of the receipts side, it will result in overdraft balance. Sometimes, a bank provides overdraft facility to its businessmen. This means that the withdrawal amount can exceed the deposit amount. But it is not possible in the case of cash column of the Cash Book, as a businessman cannot make payments that are greater than his/her receipts.
It is not necessary to record dishonour of cheques in the cash book.
Report Question
0%
True
0%
False
Explanation
Cheque that is returned unpaid by the bank on which it was drawn due to lack of sufficient funds is called 'dishonoured cheque". To knowingly issue a cheque that will be dishonoured is a criminal offence in many jurisdictions.
The statement is false because it is necessary to record the dishonour of cheques in the cash book. The dishonour of cheques is recorded on the payment side or credit side of the bank column of cash book. When a cheque is dishonoured, the Bank A/c is credited and, thus, it is credited in the bank column of the cash book.
Cash discount allowed is recorded on the debit side of cash book.
Report Question
0%
True
0%
False
Explanation
Explanation:
Discount allowed by a seller is a loss, since he is receiving lesser amount than what he could have received without allowing discount.
Hence, at the time of receiving the payment, discount allowed is recorded in the 'Discount' column on the debit side (or receipts side) of the Double Column Cash Book (with cash and discount columns).
This statement also holds valid in case of Triple Column Cash Book (with cash, discount and bank columns).
Cash book is a book of original entry.
Report Question
0%
True
0%
False
Explanation
Cash book is a primary book of original entry and includes all cash transactions of the enterprise in a chronological order.
A cash book is a book of original entry because it is the subsidiary book that records all the cash transactions of the business from the source document.
Hence, cash transactions of a business are first recorded in the cash book, and thus, it is termed as a book of original entry.
Additional cash introduced in business is recorded in ______.
Report Question
0%
Purchase book
0%
Cash book
0%
Journal proper
0%
Return inward book
Explanation
Cash book is a book in which all transactions relating to cash receipts and cash payments are recorded. It starts with the cash or bank balances at the beginning of the period.
When a cash book is maintained, transactions of cash are not recorded in the journal, and no separate account for cash or bank is required in the ledger. Any additional cash introduced in the business is also recorded in the cash book.
An entry recorded on both sides of cash Book is known as _______ entry.
Report Question
0%
Opening
0%
Rectifying
0%
Transfer
0%
Contra
Explanation
An
entry
which is made on
both sides
of
a cash book is called
Contra entry
.
In the dual
entry
accounting system,
a Contra
Entry
is an
entry
which is
recorded
to reverse or offset an
entry
on the other
side
of an account.
.
Closing balance of cash book is _____________ balance.
Report Question
0%
Debit
0%
Credit
0%
Zero
0%
Either (A) or (C)
Explanation
Total of the debit side of the cash book or cash A/c always exceeds its credit side because payments of a business cannot exceed the receipts amount. So, the cash book shows debit balance. When payments are exactly equal to the receipt of the business, it will show zero balance, but it can never show the credit balance. Thus, the cash book will always show debit balance or zero balance.
Petty cash vouchers are used to record entries on the debit side of the petty cash book.
Report Question
0%
True
0%
False
Explanation
To record transactions in petty cash book, petty cash vouchers are used.
Only withdrawal slip is used by the account holder for withdrawal of cash from the bank.
Report Question
0%
True
0%
False
Explanation
The statement "Only withdrawal slip is used by the account holder for withdrawal of cash bank", is false, as money can be withdrawn from a bank either through a withdrawal slip or a cheque. In fact, a bearer cheque is just like a withdrawal slip, as any person possessing the cheque will be paid when he/she deposits in a bank. Thus, it is not necessary that only a withdrawal slip can be used to withdraw money from a bank.
Prepaid insurance is nominal account.
Report Question
0%
True
0%
False
Explanation
Prepaid insurance is an asset of an organisation.
Assets are real accounts.
It is an asset account on the left side of the balance sheet.
Hence it is false.
Petty cash may be used to pay ______________________.
Report Question
0%
The expenses relating to passages and conveyance
0%
Salaries and wages to the manual staff
0%
For the purchase of furniture and fittings
0%
None of these.
Explanation
Petty cash may be used to pay the expenses relating to passages and conveyance.
Double entry of which of the following transactions is completed in the Cash Book itself _______________.
Report Question
0%
Paid rent by cheque
0%
Withdrew from bank for personal use
0%
A cheque received from a customer deposited into bank on the same day
0%
Cash deposited into the bank
Explanation
In double column cash, the two columns are cash and Bank.
The entry for cash deposited into bank will be
Bank a/c Dr.
To Cash a/c
Therefore, both the affects will be recorded in cash book only.
0:0:1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
0
Answered
0
Not Answered
0
Not Visited
Correct : 0
Incorrect : 0
Report Question
×
What's an issue?
Question is wrong
Answer is wrong
Other Reason
Want to elaborate a bit more? (optional)
Practice Class 9 Elements Of Book Keeping And Accountancy Quiz Questions and Answers
<
>
Support mcqexams.com by disabling your adblocker.
×
Please disable the adBlock and continue.
Thank you.
Reload page