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CBSE Questions for Class 9 Elements Of Book Keeping And Accountancy Recording And Posting Of Cash Transactions Quiz 6 - MCQExams.com
CBSE
Class 9 Elements Of Book Keeping And Accountancy
Recording And Posting Of Cash Transactions
Quiz 6
A cheque is deposited with the bank is recorded as
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Bank pass book will be credited
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Bank pass book will be debited
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Bank's column in cask book is debited
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Bank's column in cask book is credited
Explanation
A cheque is deposited with the bank implies that the bank balance will increase therefore it will be recorded in the bank column of the cash book.
When there is bank column in the cash book then it is either Double Column Cash Book or Three Column Cash Book.
It will be recorded on the debit side in the bank column of the Double column or Three column cash book.
What is an analytical petty cash book?
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Petty cash book formed in columnar form
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Petty cash book formed in tabular form
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Petty cash book formed In arithmetic form
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None of the above
Explanation
When petty cash book formed in columnar form then it is known as Analytical Petty Cash Book.
An allowance of Rs $$50$$ was offered for an early payment of cash of Rs $$1,050$$. It will be recorded in ____________.
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Sales Book
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Purchase Book
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Journal Proper(General Journal)
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Cash Book
Explanation
As cash is received therefore, it will be recorded in the cash book.
If a piece of furniture's list price is of $$28,000$$ and it is sold at 10%trade discount and 2%cash discount. The cash sale price of furniture would be ________________.
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Rs. $$25,200$$
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Rs. $$24,640$$
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Rs. $$24,696$$
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None of above
Explanation
Trade discount on furniture = 28000*10/100
= 2800
Sale price of furniture would be Rs 25200 (28000-2800)
Cash Sale price after allowing cash discount 2% is Rs 24696.
Cash discount = 25200*2/100
= 504
25200 - 504 = 24696
A company was entered in hire purchase agreement and had to pay Rs.1000 per month. Three payment we accounted but no entry was found in cash book. Identify the correct adjustment in cash book.
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Rs. 1000 will be added to cash book balance
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Rs. 2000 will be deducted from cash book balance
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Rs. 3000 will be added to cash book balance
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Rs. 3000 will be subtracted from cash book balance
Explanation
This will increase the cash book balance,
Rs. 1000 will be added to the cash book balance. Hence, the correct option is A.
A General Cash book acts as a __________.
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Journal
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Ledger
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Both
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None
Explanation
A cashbook is a book of prime entry in which cash and bank transactions of business are recorded. It acts as a book of original entry and a ledger. Hence, it is both Journal and Ledger.
The imprest system pertains to ______________.
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Purchase book
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Cash book
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Sales book
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Petty cash book
Explanation
The imprest system is an accounting system for paying out and subsequently replenishing petty cash. A cashier maintaining petty cash is given a definite sum of money in the beginning of a period and is reimbursed for payments made at the end of the period. Thus, he will have again the fixed amount in the beginning of the new period. This system is known as the imprest system of petty cash book.
In case of three column cash book, contra entry is related with _____________.
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Cash; Discount
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Cash; Bank
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Bank; Discount
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None of these
Explanation
The entry which involves both cash and bank transactions is called contra entry.
The book in which two columns are present one for cash and other for discount is ___________.
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Sales book
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Purchase book
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Cash book
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None of the above
Which of the following is correct about trade discount?
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It is synonymous with discount?
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It is shown by way of deduction in invoice itself
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It is calculated on account paid or received
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It is allowed to engage the prompt payment
Explanation
A trade discount is the amount by which a manufacturer reduce the retail price of a product when it sells to a reseller, rather than to the end customer. the reseller than charges the full retail price to its customers in order to earn a profit on the difference between the amount by which the manufacturer sold the product to it and the price at which it then sells the product to the final customer. The reseller does not necessarily resell at the suggested retail price; selling at a discount is a common practice. If the reseller wishes to gain market share or clear out excess inventory. Trade discount is issued by deduction in the first price. From accounting point of view no entries are made. It is shown by way of deduction in invoice itself.
Which of the following is a double column cash book?
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One column for cash and another for bank
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One column for cash and another for discount
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One for bank and another for discount
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All of the above
Explanation
A double column cash book contains
One column for cash and another for bank
Which of the following statements is incorrect?
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In emergency the Petty Cashier may give staff loans of small amounts
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The Petty Cash Book could be either a subsidiary book or a main book of accounts.
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Every payment made by the Petty Cashier should be supported by evidence
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Regularly Petty Cashier is reimbursed to make up his cash balance to the imprest
In which of the book cash purchase is recorded?
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Cash book
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Purchase book
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Both (a) and (b)
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None of these
Explanation
The Journal Entry for Cash purchases is
Purchases a/c Dr.
To Cash A/c
(Being Goods purchased for cash)
As it is cash purchase so, it will impact cash therefore, it will be recorded in the cash book.
Which of the following column of the cash book is never balanced ?
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Cash column
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Bank column
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Discount column
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None of the above
Explanation
All cash receipts and discount allowed are recorded on the debit side and all cash payments and discount received are recorded on the credit side as same in single column cash book.
Discount column is not balanced. The total of discount columns is transferred to the Profit and Loss account.
When using a petty cash system, the replenishment of the fund would normally include a debit to _______________.
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Cash.
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Petty Cash.
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Revenues.
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None of the above
Explanation
An imprest system of petty cash means that
the general ledger account Petty Cash will remain dormant at a constant amount
.
When using a petty cash system, the replenishment of the fund would normally include a debit to cash. Hence, the correct option is A.
Rent due for the month of March will appear ___________________.
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On the payment side of the cash book
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On the receipt side of the cash book
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Nowhere in the cash book
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As a contra entry
Explanation
The rent due but not paid is an outstanding loan which is a Liability.
It rent is not paid for the march month.
As rent is due and not paid therefore, it will not appear in the cashbook.
Which of the following is type of cash receipt journal + cash payment journal?
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Bank statement
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Statement of cash flow
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Cash book
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Cash documents
Explanation
A cash book is a statement which records all the cash receipts and cash payments of the business transactions. Recording of cash transactions is done in cash book from the very inception. Therefore, cash book is said to be the journal of recording cash receipts and payments.
Which of the following is/are features of cash book ?
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All cash transactions are recorded chronologically in the cash book.
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It records only one aspect of transaction i.e cash.
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It performs the functions of both journal and ledger at the same time .
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All of the above
Explanation
The feature of the cash book is it performs the functions of both journal and ledger.
The Separate ledger account is prepared for all cash receipts and cash payments. This Ledger is known as Cash Account.
While the cash book which is called a journal book records all the cash receipts and cash payments, therefore, it is the same as the ledger.
Therefore, a
cash book serves both journal and ledger purposes.
Which of the column of the cash book can have credit opening or closing balance ?
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Cash column
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Bank column
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Discount column
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(B) & (C)
Explanation
Bank column may have a credit opening or closing balance as it may be possible the the business has bank overdraft.
Cash purchases are recorded in _____________.
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Purchases Book
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Cash Book
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Purchases Returns Book
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Partly in Cash Book and partly in Journal Proper
Explanation
The journal Entry for cash Purchases is
Purchases a/c Dr.
To Cash a/c
(Being Goods purchased for cash)
As cash is involved in this transaction therefore, it will be recorded in the cash book.
Cash sales are recorded in ___________.
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Journal proper
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Sales Book
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Cash Book
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All of the above
Explanation
The Journal Entry for Cash Sales is
Cash a/c Dr.
To Sales a/c
(Being Goods sold for cash)
So, Cash will increase therefore, it will be recorded in the cash book.
Balance of cash column in cash book has ____________.
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Dr. Balance
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Cr. Balance
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Dr. or Cr. Balance
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None of above
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. Therefore, Balance of Cash book is always Debit or Zero.
Contra entries are passed only when __________________.
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Simple cash book is prepared
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Three-column cash book is prepared
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Double-column cash book is prepared
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None of the above
Explanation
Contra entry is passes only when Double column cash book is prepared.
The reason for making two entries is to comply with the principle of double entry.
Payments in cash of small amounts like travelling expenses, postage, carriage, etc. are recorded in the ______________.
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Main Cash Book
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Petty Cash Book
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Cash Budget
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Journal proper
Explanation
Petty Cash Book is an accounting book used for recording expenses which are small and of little value, for example,
stamps, postage and handling, stationery, carriage, daily wages
, etc.
Sold furniture on cash for Rs $$1,50,000$$ will be recorded in ______________.
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Sales Book
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Purchase Book
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Journal Proper (General Journal)
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Cash Book
Explanation
The Journal Entry for this transaction is
Cash a/c Dr.
To Furniture a/c
when furniture is sold
for cash
then the cash is received which will be recorded in the cash book.
Purchase of furniture on cash for Rs $$1,50,000$$ will be recorded in _____________.
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Sales Book
0%
Purchase Book
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General Journal
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Cash Book
Explanation
The Journal Entry for above transaction
Furniture a/c Dr. 1,50,000
To Cash a/c 1,50,000
(Being Furniture purchased for cash Rs. 1,50,000)
As it is purchased for cash therefore, it will be recorded in cash book.
If a transaction involves both cash and bank account, it is entered on both sides of the cash book, one in the cash column and second in the bank column, though on opposite sides. This is called a _____________.
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Journal entry
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Adjustment entry
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Contra entry
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Combined entry
Explanation
The term contra refers to the opposite side.
Contra entries are those entries in which the same account can be debited and credited.
In case where the transaction involves both cash and bank, it is entered on both, debit and credit side of the cash book and hence such entry is called a contra entry.
Received cash of Rs $$2,00,000$$ from debtors for settlement of credit sales will be recorded in ______________.
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Sales Book
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Purchase Book
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Journal Proper (General Journal )
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Cash Book
Explanation
It will be recorded in the cash book as cash is involved in the above transaction.
Purchase of Machinery from Mr. X, a dealer in machinery for Rs. 100,000 is recorded in _______________.
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Cash Book.
0%
Sales Book.
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Purchases Book.
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Journal Proper.
Explanation
The Journal Entry for above transaction is
Machinery a/c Dr. 100,000
To Mr. X 100,000
(Being Machinery purchased from Mr. X for Rs. 100,000)
As this transaction can not be recorded in sales book, Cash Book or Purchase Book. Therefore it will be recorded in the Journal Proper.
On purchase of goods of the list of price Rs 10000 from Ram who allowed 10% trade discount and 5% cash discount for immediate payment _____________________.
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Purchase Account to be debited with Rs 10000
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Purchase Account to be debited with Rs 8500
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Purchase Account to be debited with Rs 8550
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Discount Received A/c to be credited with Rs 500
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Discount Received A/c to be credited with Rs 450
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Practice Class 9 Elements Of Book Keeping And Accountancy Quiz Questions and Answers
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