Tag: elements of book keeping and accountancy

Questions Related to elements of book keeping and accountancy

Accounting for partial recovery from Mr. Ram of an amount earlier written off as bad debt 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. journal proper (General Journal)

  2. sales book

  3. purchase book

  4. cash book

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Correct Option: D

An allowance was offered for an early payment of cash will be recorded in the ___________.

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. cash book

  3. journal proper (General Journal)

  4. purchase book

Show answer
Correct Option: B

A debit balance in the depositors Cash Book will be shown as _________.

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. a debit balance on the Bank Statement

  2. a credit balance on the Bank Statement

  3. an overdrawn balance on the Bank Statement

  4. none of the above

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Correct Option: B

Which of the following is the kind of a cash book?

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. Single column cash book

  2. Double column cash book

  3. Three-column cash book

  4. All of the above

Show answer
Correct Option: D
Explanation:

There are three common versions of the cash book: single column, double column, and triple column.The single column cash book shows only receipts and payments of cash. The double column cash book shows cash receipts and payments as well as details about bank transactions.

Payment done by the account holder through issuing a cheque is entered 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. the cash book at the time of issuing the cheque

  2. the cash book at the time of presenting the cheque to the bank for payment

  3. the pass book at the time of presenting the cheque to the bank for payment

  4. both (a) and (c) 

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Correct Option: D

Which of the following is correct?

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 book is a journal and not a ledger

  2. Cash book is a ledger and not a journal

  3. Cash book is both a journal and a ledger

  4. Cash book is neither a journal nor a ledger

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Correct Option: C

Cash sales are 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. Cash Book

  3. Journal

  4. Purchase Book.

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Correct Option: B

When a firm maintains a simple Cash Book, it need not maintain ____________.

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 journal

  2. purchases journal

  3. general journal

  4. cash account in the ledger

Show answer
Correct Option: D

A cheque received and deposited in the bank on the same day is recorded in the ______________.

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 of the cash book

  2. bank column of the cash book

  3. credited in the cash book

  4. debited in the cash book.

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Correct Option: B

The advantages of imprest system of petty cash include:
1. The main (or head) cashier is relieved of maintaining record of petty payments
2. Small payments are not stuffed in the main cash book.
3. Complete and reliable check is maintained on small items of expenses
4. It is automatically 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. $1, 2$ and $4$

  2. $1, 2$ and $3$

  3. $2, 3$ and $4$

  4. $2$ and $4$

Show answer
Correct Option: B