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CBSE Questions for Class 9 Elements Of Book Keeping And Accountancy Recording And Posting Of Cash Transactions Quiz 3 - MCQExams.com
CBSE
Class 9 Elements Of Book Keeping And Accountancy
Recording And Posting Of Cash Transactions
Quiz 3
Cash Account always shows _______ balance.
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0%
Debit
0%
Credit
0%
Negative
0%
Minus
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 the organisation, big or small, profit or not-for-profit. 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.
Hence,Cash account will always show a debit balance because cash payments can never exceed cash receipts and cash in hand at the beginning of the period.
On the basis of receipt voucher, the debit side of cash book is written up.
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0%
True
0%
False
Explanation
No entry shall be prepared for opening balance of
cash
. It will simply be shown in
debit side of cash book
.
Note: All payment
Vouchers
shall be
written
in payment
side of cash book
and receipt
vouchers
shall be
written
in receipt
side of cash book
.
When cheque is issued to an outside party it is recorded on the credit side of the cash book in the bank column.
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0%
True
0%
False
Explanation
.
The features of journal and ledger are found together in cash book.
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0%
True
0%
False
Explanation
A cash book is a book of prime entry as well as of secondary entry. In other words, it is a subsidiary book as well as a ledger. When an organisation maintains the subsidiary books, it records all the transaction related to cash, bank and discount only in the Cashbook. Later, they are posted to the individual ledger accounts from there. However, when we balance a Cashbook we get to know the balance of cash, bank, discount allowed and discount received. Thus, we do not need to prepare a separate ledger account.
Thus, the correct answer is A.
Contra entry does not appear on both the sides of the three column cash book.
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0%
True
0%
False
Explanation
Transactions recorded in three column cash book relates to both cash and bank account (i.e. balance of one will decrease and other will increase). Such transactions are entered on both sides of the cash book and are known as Contra Entry. These types of entries require no further posting in any other account. Such entries are marked in the cash book with the letter "C" in the folio column to indicate that these are contra transactions and no further posting is required for them.
When cheque is ___________ into bank, cash book is debited.
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0%
Issued
0%
Deposited
0%
Dishonoured
0%
Bounced
Explanation
When cheque is deposited in Bank the entry for the same is as follows :
Cash/Bank A/c. ........................... Dr.
To Sundry receivables A/c.
So, when a cheque is deposited into Bank the bank balance in the cash book would increase and as the cash book shows a debit balance, the cash book is to be debited which is evidently clear from the above journal entry
_______ column of cash book can have credit opening or closing balance.
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0%
Cash
0%
Discount
0%
Bank
0%
(B) and (C)
Explanation
The bank column is balanced in the same way as the cash column.
However, in the bank column, there can be credit balance also because of overdraft taken from the bank. Overdraft is a situation when cash withdrawn from the bank exceeds the amount of deposit. Entries in respect of cheque received should be made in the bank column of the cash book. Bank column of cash book can have a credit opening or closing balance.
Cash Book is a_______book.
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0%
principal book
0%
subsidiary book as well as principal book
0%
kaccha book
0%
ledger itself
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 organizations, big or small, profit or not-for-profit. It serves the purpose of both journals as well as ledger (cash) account. It is a subsidiary book and also called a book of original entry/principal book. 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.
On the credit side of cash book/account______are shown.
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0%
Capital Receipts
0%
Revenue Receipts
0%
All types of Payments
0%
Cash Payment
Explanation
Cash Book is divided into two side -
1. Debit Side
(also known as the
Receipts Side
) ; When there is increase in cash then it is recorded in Debit Side because Debit is All increase in assets.
2. Credit Side
(Also Known as the
Payments Side
) :
When there is decrease in cash then it is recorded in credit Side because credit is All decrease in assets.
Therefore, on the credit side of cash book/account all types of payments are shown.
_________column of a cash book cannot have credit closing balance.
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0%
Cash column
0%
Discount column
0%
Bank column
0%
All of three
Explanation
Cash column of a cash book cannot have credit closing balance as cash can not be negative.
Either the business will have some cash or there will be no cash. But it can not be negative.
Therefore, cash account has either debit balance or Zero balance.
On the debit side of cash book/account______are shown.
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0%
Capital receipts
0%
Revenue receipts
0%
All types of receipts
0%
Cash payment
Explanation
Cash Book
is a
subsidiary book
that records all the
cash transactions
whether it is revenue in nature or capital in nature. All the
capital and revenue receipts and payments
are recorded in the cash book.
Cash Book serves the purpose of both
Journal and ledger
. There is no need to prepare a cash account if the cash book is being maintained.
There are two sides to the Cash Book.
The Debit side of the Cash Book is known as the
Receipts side
whereas the credit side is known as the
Payment side
.
Therefore, On the debit side of the cash book/account, all types of receipts are shown.
_________ may be defined as the record of transaction concerning cash receipts and cash payment.
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0%
Cash book
0%
Bank book
0%
General journal
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 cash or bank valances 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 journal as well as the ledger (cash) account. It is also called the book of original entry.
When a cash book is maintained, transactions of cash are not recorded in the journal, and no separate account for cash and bank is required in the ledger.
Cash purchases are recorded in ______________.
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0%
Purchases Book
0%
Cash Book
0%
Purchases Returns Book
0%
Partly in Cash Book and partly in Journal Proper
Explanation
Cash purchase involves payment of cash therefore, it will be recorded in the cash book.
The cash book records only________.
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0%
All cash receipts
0%
All cash payments
0%
Both (A) and (B)
0%
Only cash and credit sale of goods
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 a 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 journal as well as the ledger (cash) account. It is also called the book of original entry.
When a cashbook is maintained, transactions of cash are not recorded in the journal, and no separate account for cash or bank is required in the ledger.
Rent for the month of May received in advance in the month of April will appear on__________________.
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0%
payment side (credit) of cash book
0%
receipt side (debit) cash book
0%
No entry
0%
prepaid rent a/c
Explanation
Rent for the month of May received in advance in the month of April will appear on Cash Book.
As cash is received in the form of rent money, therefore, it will be recorded on the debit side of the cash book. Debit side of the cash book is also known as the receipt side.
_________column of cash book is never balanced.
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0%
Discount
0%
Cash
0%
Bank
0%
None
Explanation
In a Triple column cash book, we have cash, bank and discount columns. The discount column on the debit side is the discount allowed which is an expense. Whereas the discount column on the credit side is the discount received which is an income.
Thus, the discounts columns are never balanced as they both have a different nature. However, cash and bank columns are always balanced.
Thus, the correct option is A.
The closing balance of the petty cash book is_______.
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0%
Expense/expenditure
0%
Profit/ gain
0%
Assets
0%
Liability
Explanation
The closing balance of petty cash book is considered as Asset.
Petty Cash is a current asset account; it is part of a company's cash.
Petty cash Book
is just like a
cash book
, its just that this
book
maintains
petty cash
expenses separately as against the normal
cash book
.
Therefore,
balance of petty cash book
is an
asset
& an not
income
. Its used for paying out
petty
expenses.
In petty cash book________column records receipts.
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0%
extreme left hand
0%
extreme right hand
0%
centre column left hand side
0%
centre column right hand side
Explanation
In petty cash book extreme left hand column records receipts.
Cheques received but not banked is generally shown in__________column of Cash Book.
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0%
Cash
0%
Discount
0%
Bank
0%
None
Explanation
If the cheque is not deposited into the bank then it is assumed as
cash
therefore, it will be recorded in the
cash column of the cash book
.
But if the same cheque is deposited into the bank on the same day then it will be recorded in the Bank Column of the Cash Book.
In cash book with discount column, total of discount column of credit side of the cash book is posted to the________.
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0%
Dr. of Discount Allowed A/c
0%
Dr. of Discount Received A/c
0%
Cr. of Discount Allowed A/c
0%
Cr. of Discount Received A/c
Explanation
One more type of cash book is triple column cash book. Three columns are cash, bank and discount column where cash discount allowed and cash discount received are recorded in discount column.
Total of cash discount received is to be posted to the credit of discount received account.
Rent outstanding for the month of February will appear_________.
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0%
on the debit side of the cash book
0%
on the credit side of the cash book
0%
as a contra entry in the cash book
0%
no entry in the cash book
Explanation
When there is rent outstanding for the month of February then this implies that no cash is paid or received as a rent in the month of February therefore, no entry in the cash book.
Cash Book records only those entries which have a effect on the cash or bank balanace.
_________ is/are forms of a cash book.
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0%
Single column cash book
0%
Double
column cash book
0%
Three
column cash book
0%
All 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.
Generally, it is made on monthly basis. This is a very popular book and is maintained by all the organisation, big or small, profit or not-for-profit. It serves the purpose of both journal as well as ledger account.
It is also called the book of original entry.
Single column cash book, Double column cash book and Three column cash book are all forms of a cash book.
_______does not exist in the three column cash book.
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0%
Cash Column
0%
Bank Column
0%
Petty Cash Column
0%
Discount Column
Explanation
There is no column as petty Cash column in three column cash book.
Rent for the month of April paid in advance in the month of March will be shown_____.
Report Question
0%
payment side (credit) of cash book
0%
receipt (debit) side of cash book
0%
no entry
0%
trial balance
Explanation
When
Rent for the month of April is paid in advance in the month of March will be shown in the cash book.
As cash is paid, therefore, it will be recorded in the payment side of the cash book. The payment side of cash means the credit side of the cash book.
Cash purchase of new plant is initially recorded in ________.
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0%
Purchase Day Book
0%
Cash Book
0%
Plant A/c
0%
Any of the Above
Explanation
Irrespective of the nature of transaction i.e. revenue or assets, all cash transactions must initially recorded in cash book. Hence cash purchase of new plant will be recorded in cash book.
Which of these will not be recorded in cash book/account?
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0%
Two months rent of Rs. 5000 paid in advance
0%
One year insurance premium Rs.9000 paid in advance
0%
Goods purchased on 3 months credit
0%
Goods worth Rs. 5900 sold cash
Explanation
The Journal Entry for
Option 3
is
Purchases a/c Dr.
To Creditors a/c
Goods purchased on credit does not involve any outflow of cash therefore, it will not be recorded in the cash book.
From the following details ascertain the adjusted bank balance as per Cash book .....
Overdraft as per Cash book Rs.80,000
Cheque received entered twice in the cash book Rs.5000
Credit side of bank column cast short by Rs. 500
Bank Charges amounting to Rs.200 entered twice
Cheque issued but dishonoured Rs. 2000
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0%
Rs.80,500
0%
Rs. 85500
0%
Rs.85000
0%
Rs.85300
A cash purchase of trading goods will be recorded in...........
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0%
Purchase journal
0%
Purchase A/c
0%
Cash payment Journal
0%
Petty cash book
Cash sales of trading goods is initially recorded in ________.
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0%
Sales Day Book
0%
Cash Book
0%
Directly n Sales A/c
0%
All the above
Explanation
Cash book is maintained by the business to record all the cash transactions i.e. expense and revenues. Cash sales of goods must be recorded in cash book on the date of sale itself.
Accounting for partial recovery from Mr. Ram of an amount earlier written off as bad debt will be recorded in _________.
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0%
journal proper (General Journal)
0%
sales book
0%
purchase
book
0%
cash
book
Explanation
As partial amount is received in cash therefore, it will be recorded in cash book.
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Practice Class 9 Elements Of Book Keeping And Accountancy Quiz Questions and Answers
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