Tag: elements of book keeping and accountancy

Questions Related to elements of book keeping and accountancy

Which of the following column of the cash book is never balanced ?

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. Cash column

  2. Bank column

  3. Discount column

  4. None of the above

Show answer
Correct Option: C
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.

Contra entry appears in ______________.

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. Purchases Returns book

  2. Cash book

  3. Journal proper

  4. All of the above

Show answer
Correct Option: B

The cash book records _______________.

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. All cash payments

  2. All cash receipts

  3. All cash receipts and payments

  4. Cash and credit sale of goods

Show answer
Correct Option: C

Admission fees received during the year should be treated ______________.

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. As capital income

  2. As revenue income

  3. As revenue, unless the amount involved is large

  4. As capital, except for large amounts involved

Show answer
Correct Option: C

Total of debit side discount column of cash book is posted to ______________.

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. Cr. of Discount Received A/c

  2. Dr. of Discount Received A/c

  3. Cr. of Discount Allowed A/c

  4. Dr. of Discount Allowed A/c

Show answer
Correct Option: D

Contra entries are passed only when __________________.

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. Simple cash book is prepared

  2. Three-column cash book is prepared

  3. Double-column cash book is prepared

  4. None of the above

Show answer
Correct Option: C
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.

Rent due for the month of March will appear ___________________.

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. On the payment side of the cash book

  2. On the receipt side of the cash book

  3. Nowhere in the cash book

  4. As a contra entry

Show answer
Correct Option: C

Which of the column of the cash book can have credit opening or closing balance ? 

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. Cash column

  2. Bank column

  3. Discount column

  4. (B) & (C)

Show answer
Correct Option: B

Purchase of furniture on cash for  Rs $1,50,000$ will be recorded in _____________.

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. Sales Book

  2. Purchase Book

  3. General journal

  4. CashBook

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Correct Option: D

An allowance of Rs $50$ was offered for an early payment of cash of Rs $1,050$. It will be recorded in ____________.

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. Sales Book

  2. Purchase Book

  3. Journal Proper(General Journal)

  4. Cash Book

Show answer
Correct Option: D