Multiple choice

When a firm maintains a double column cash book, it need not maintain

  1. cash account in the ledger

  2. discount account in the ledger

  3. bank account in the ledger

  4. general journal
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A double column cash book records both cash and bank transactions. Since cash transactions are already recorded in the cash book, maintaining a separate cash account in the ledger would be duplication and is therefore unnecessary.

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