Tag: recording and posting of cash transactions

Questions Related to recording and posting of cash transactions

When obsolete assets are sold on credit, these are originally 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 day book

  2. Sale account

  3. General journal

  4. Any of the above

Show answer
Correct Option: C

Which of the following is/are features of 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. All cash transactions are recorded chronologically in the cash book.

  2. It records only one aspect of transaction i.e cash.

  3. It performs the functions of both journal and ledger at the same time .

  4. All of the above

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Correct Option: D

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

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Correct Option: D

Which of the following is/are features of 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. It performs the functions of both journal and ledger at the same time.

  2. Cash receipts are recorded in the credit side and cash payments are recorded in the debit side.

  3. IT records two aspect of transaction i.e cash & credit.

  4. All of the above

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Correct Option: A

Cash Book is in the form of ___________.

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

  2. An account

  3. Statement

  4. All of the above

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Correct Option: B

Which of the following is type of 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. Two Column Cash Book

  3. Three Column Cash Book

  4. All of the above

Show answer
Correct Option: D

The details of goods returned by the customers to the business organization are recorded in ________ 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. Sales Returns Book

  2. Purchase Returns Books

  3. Journal Proper

  4. All of the above

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Correct Option: A

The total amount column of the sales return books is _________________.

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. Credited to purchases return account

  2. Debited to sales return account

  3. Credited to sales return account

  4. Debited to purchases returns account

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Correct Option: B

_______is the book in which all transactions concerning cash receipts and cash payments are recorded.

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

  2. Cash book

  3. Sales book

  4. none of above.

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Correct Option: B

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.