Tag: recording and posting of cash transactions

Questions Related to recording and posting of cash transactions

State whether True or False:
All transactions related to bank are recorded in the bank  column of the cash book and these transactions are also recorded in the pass book by the bank.

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. True

  2. False

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Correct Option: A

Bank column of the Cash Book has __________ 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. Debit

  2. Credit

  3. Either (a) or (b)

  4. Neither (a) nor (b)

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Correct Option: C
Explanation:

The double column cash book (also known as two column cash book) has two money columns on both debit and credit sides – one to record cash transactions and one to record bank transactions.

_______ is 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

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. Journal proper

  2. Sales Book

  3. Cash Book

  4. All of the above

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Correct Option: C

Cash purchases 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. Purchases Book

  2. Cash Book

  3. Purchases Returns Book

  4. Partly in Cash Book and partly in Journal Proper

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Correct Option: B

Which of the following books is used to record purchase of machinery by cash?

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

  2. Purchases book

  3. Journal proper

  4. Purchases returns book

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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/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

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

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Correct Option: C

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