Tag: recording and posting of cash transactions

Questions Related to recording and posting of cash transactions

Favourable balance as per cash book means __________.

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

  1. debit balance in the bank column of the cash book

  2. debit balance in the pass book

  3. credit balance in the bank column in the cash book

  4. none of the above

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Correct Option: A

The balance of the Cash Column is _____________.

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

  1. Always Debit

  2. Always Credit

  3. Either Debit or Credit

  4. Neither Debit nor Credit

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Correct Option: A

Under sales on returned or approval basis, when transactions are few, the seller, while sending the goods, treats them as

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

  1. an ordinary sale but no entry is passed in the books

  2. an ordinary sale and entry for normal sale is passed in the books

  3. Approval sale and no entry is passed

  4. None of these

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Correct Option: B

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

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

  1. payment side (credit) of cash book

  2. receipt side (debit) cash book

  3. No entry

  4. prepaid rent a/c

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Correct Option: B

____________recorded in cash book.

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

  1. Rs. 5000 received from Rahul

  2. Rs. 6500 paid to Gopal

  3. Loan of Rs. 51000 taken from Bank

  4. All of three

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Correct Option: D

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

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

  1. payment side (credit) of cash book

  2. receipt (debit) side of cash book

  3. no entry

  4. trial balance

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Correct Option: A

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

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

  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

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Correct Option: C

Cash A/c is a ________.

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

  1. Nominal A/c

  2. Real A/c

  3. Personal A/c

  4. Fictitious A/c

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Correct Option: B
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.

_________ is shown in trial balance.

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

  1. Balance as per cash book

  2. As per book pass book

  3. As certified by St. Auditor

  4. As per bank statement

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Correct Option: A
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.

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

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

  1. Cash

  2. Discount

  3. Bank

  4. None

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Correct Option: A