Tag: elements of book keeping and accountancy

Quizzes (38) Questions (832)

Questions Related to elements of book keeping and accountancy

Multiple choice elements of book keeping and accountancy recording and posting of cash transactions understand the method of recording cash transactions simple cash boook meaning, features and types of cash book

Rent for the month of May received in advance in the month of April will appear on__________________.

  1. payment side (credit) of cash book

  2. receipt side (debit) cash book

  3. No entry

  4. prepaid rent a/c
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Receiving rent in advance is a cash inflow. Cash inflows are recorded on the receipt (debit) side of the cash book.

Multiple choice elements of book keeping and accountancy recording and posting of cash transactions understand the method of recording cash transactions simple cash boook meaning, features and types of cash book

____________recorded in cash book.

  1. Rs. 5000 received from Rahul

  2. Rs. 6500 paid to Gopal

  3. Loan of Rs. 51000 taken from Bank

  4. All of three
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The cash book records all cash receipts and cash payments, including loans taken in cash.

Multiple choice elements of book keeping and accountancy recording and posting of cash transactions understand the method of recording cash transactions simple cash boook meaning, features and types of cash book

Rent for the month of April paid in advance in the month of March will be shown_____.

  1. payment side (credit) of cash book

  2. receipt (debit) side of cash book

  3. no entry

  4. trial balance
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Paying rent in advance is a cash outflow. Cash outflows are recorded on the payment (credit) side of the cash book.

Multiple choice elements of book keeping and accountancy recording and posting of cash transactions understand the method of recording cash transactions simple cash boook meaning, features and types of cash book

Which of these will not be recorded in cash book/account?

  1. Two months rent of Rs. 5000 paid in advance

  2. One year insurance premium Rs.9000 paid in advance

  3. Goods purchased on 3 months credit

  4. Goods worth Rs. 5900 sold cash
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The cash book only records cash transactions. A credit purchase does not involve an immediate cash flow, so it is recorded in the purchase journal, not the cash book.

Multiple choice elements of book keeping and accountancy recording and posting of cash transactions understand the method of recording cash transactions simple cash boook meaning, features and types of cash book

Cash A/c is a ________.

  1. Nominal A/c

  2. Real A/c

  3. Personal A/c

  4. Fictitious A/c
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An account is a list of business transactions falling under the same description for a given period of time. 

A systematic and summarized record of business  transactions with respect to person, property, loss, gain, income, expense is known as account. An account is generally prepared for one complete year. All accounts other than personal accounts are known as impersonal accounts. 
For instance, Cash A/c, Rent A/c, Wages A/c, Furniture A/c are impersonal accounts. Impersonal accounts are classified as Real A/c and Nominal A/c. An account or property or anything owned and possessed by a business is called Real A/c. In other words, real account is that account which related to assets, objects etc. of the business. 

This account consists assets, and properties which can be seen, touched, measured, purchased ans sold. Cash A/c is a Real A/c as it relates to the property of the business.

Multiple choice elements of book keeping and accountancy recording and posting of cash transactions understand the method of recording cash transactions simple cash boook meaning, features and types of cash book

_________ is shown in trial balance.

  1. Balance as per cash book

  2. As per book pass book

  3. As certified by St. Auditor

  4. As per bank statement
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The business firm prepares a trial balance on the basis of the balances shown in its books of accounts. The balance as shown in bank pass book and as shown in the Bank column of cash book may differ due to time differences. 

Also, the balance as certified by statutory auditor is not the actual balance of the cash. A bank statement is also not an account and is prepared by the bank.
The balance as shown in the Cash book is actually arrived at by the means of double entry system in the books. Thus, we show the balance as per Cash book in the trial balance.
Hence, the correct option is A.

Multiple choice elements of book keeping and accountancy recording and posting of cash transactions understand the method of recording cash transactions simple cash boook meaning, features and types of cash book

Cheques received but not banked is generally shown in__________column of Cash Book.

  1. Cash

  2. Discount

  3. Bank

  4. None
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Cheques received but not yet deposited into the bank are treated as cash on hand until they are banked, so they are recorded in the cash column.

Multiple choice elements of book keeping and accountancy accounting in business develop the understanding of recording of transactions in journal illustrations on journal entries types of journal entries meaning and classification of business transactions

One debit account and more than one credit account in a entry is called compound entry.

  1. True

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

 Compound journal entries are those in which more than two accounts are affected. A compound entry may require that two or more accounts be debited or two or more accounts be credited. Suppose a business borrows money to purchase an asset, such as a building.

Multiple choice elements of book keeping and accountancy accounting in business develop the understanding of recording of transactions in journal illustrations on journal entries types of journal entries meaning and classification of business transactions

The amount brought in by the proprietor in the business should be credited to ____________.

  1. Cash Account

  2. Capital Account

  3. Drawing Account

  4. Bank Account
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Business entity or separate entity concepts defines that the owner and the business are to be treated separately. 

If any amount is contributed by the owner should be treated as liability and to be credited in capital account. 
Journal Entry:-
Cash A/c Dr.
To Capital A/c.