Tag: elements of book keeping and accountancy

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Questions Related to elements of book keeping and accountancy

Multiple choice 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

Which among the following are advantages of Imprest Petty Cash Book ? 

  1. Labor Minimization

  2. Determination of expenses

  3. Control over petty expenses

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

The imprest system of petty cash offers several key benefits, including reducing the workload of the head cashier (labor minimization), simplifying the tracking and determination of minor expenses, and establishing strict control over petty cash spending. Therefore, all of the listed options are genuine advantages.

Multiple choice 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

Entry for trade discount always appears in the books of account.

  1. True

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

The discount allowed by a seller to its customers at a fixed percentage on the listed price of goods is termed as Trade discount. 

No separate entry is passed for the Trade discount, as it is deducted from the cash memo or invoice of the goods. 
If the goods sold at trade discount are returned by the customer, the amount of trade discount is again deducted from the list price of the returned goods. Generally, it is allowed to the retailers to enable them to sell the goods to their customers at list price. 
The purpose is also to increase the sales. 
It is not recorded in the books of accounts.