Tag: book keeping and accountancy

Quizzes (126) Questions (1524)

Questions Related to book keeping and accountancy

Multiple choice book keeping and accountancy banking transactions and accounts relating to cheque functions and services of modern banking meaning of passbook and cashbook journal entries for transactions through bank and for loans

Carriage on saleable goods is a ___________ .

  1. Capital Expenditure

  2. Revenue Expenditure

  3. Deferred Revenue Expenditure

  4. Prepaid Expenses
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Carriage on saleable goods (carriage outwards) is an operating expense incurred in the normal course of business, making it a revenue expenditure.

Multiple choice book keeping and accountancy banking transactions and accounts relating to cheque functions and services of modern banking meaning of passbook and cashbook journal entries for transactions through bank and for loans

Which of the following item is to be adjusted in the Amended Cash Book:

  1. Uncollected cheques

  2. Unpresented cheques

  3. A wrong entry in the Pass Book

  4. A correct entry in the Pass Book but not appearing in Cash Book
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An amended cash book is where all the adjustments are done, the starting point being the balance as per cash book. All the errors in the cash book are adjusted in the same. Hence, an entry not appearing in the cash book is to adjusted in an amended cash book.

Multiple choice book keeping and accountancy banking transactions and accounts relating to cheque functions and services of modern banking meaning of passbook and cashbook journal entries for transactions through bank and for loans

An account book which is maintained by the businessman to record only banking transactions entered with the various banks is called Bank book.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

True. A bank book may also be known as a passbook which is maintained only for recording transactions of a bank account. A Bank Book is a statement that shows the transactions that occur is a customer's bank account.  

Multiple choice book keeping and accountancy banking transactions and accounts relating to cheque functions and services of modern banking meaning of passbook and cashbook journal entries for transactions through bank and for loans

A Bank Pass Book is a small booklet in which the details of all ledger entries in respect of banking transactions appearing in the books of bank are entered for the knowledge of account holder.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A Bank Pass Book is a statement that shows the transactions that occur is a customer's account. The bank maintains customer's account which are further copied/transferred to the Bank Pass Book. Pass Book is maintained so that the customer can refer the transactions that have occurred over a period of time.

Multiple choice book keeping and accountancy banking transactions and accounts relating to cheque functions and services of modern banking meaning of passbook and cashbook journal entries for transactions through bank and for loans

State whether the following statement is True or False.
Interest on overdraft is debited in pass book.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

True. Interest on overdraft is charged by the bank and paid by the customer. So, it reduces the balance in the pass book which is prepared by the bank as a copy of customer's account in the books of the bank.

Multiple choice book keeping and accountancy banking transactions and accounts relating to cheque functions and services of modern banking meaning of passbook and cashbook journal entries for transactions through bank and for loans

Interest on bank overdraft is recorded on ___________ side of pass-book.

  1. debit

  2. credit

  3. both side

  4. any side
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The journal entry in case of interest on bank overdraft in the books of account holder is as follows :

Interest on bank overdraft A/c. ...................Dr.
To Bank A/c
In the cash book the above entry  would be recorded on the credit side and as we know that pass book is an exact opposite record of the cash book so, interest on bank overdraft would be recorded on the debit side of the pass book.

Multiple choice book keeping and accountancy banking transactions and accounts relating to cheque functions and services of modern banking meaning of passbook and cashbook journal entries for transactions through bank and for loans

State whether the following statement is True or False.
Bank charges debited by Bank increase bank balance in the Pass Book.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

False. Bank charges debited by the bank in the pass book reduces the balance in the pass book as compared to cash book. This is because the business has not yet recorded this transaction. This difference arises only because of the difference in recording of the transaction.

Multiple choice book keeping and accountancy banking transactions and accounts relating to cheque functions and services of modern banking meaning of passbook and cashbook journal entries for transactions through bank and for loans

State whether the following statement is True or False.
Interest credited in Pass Book is an income to the customer.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

True. Interest credited in the pass book is an income for the customer as credited amount shows favourable balance and debited balance shows unfavourable balance in the pass book for the customer.

Multiple choice book keeping and accountancy banking transactions and accounts relating to cheque functions and services of modern banking meaning of passbook and cashbook journal entries for transactions through bank and for loans

State whether the following statement is True or False.
Cheque deposited into the bank increases the bank balance in the cash book.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

True. Cheque deposited into bank for collection are first received by business, and then sent to bank for collection. So the business records the transaction by debiting the bank column in the cash book as the amount is going to get added in the bank account and not as cash balance in the form of currency.

Multiple choice book keeping and accountancy banking transactions and accounts relating to cheque functions and services of modern banking meaning of passbook and cashbook journal entries for transactions through bank and for loans

State whether the following statement is True or False.
Interest and dividend collected by the bank increases the bank balance in the pass book.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

True. Interest and dividend are incomes of the customer which are collected by the bank on behalf of the customer. So, when money is received by the bank, the bank increase the balance in the cash book and credits the customer's account.