Tag: recording and posting of cash transactions

Questions Related to recording and posting of cash transactions

The purchase of supplies for cash will result in an _______________.

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. Increase in cash and a decrease in capital

  2. Increase in cash and an increase in supplies

  3. Increase in supplies and a decrease in cash

  4. Increase in equipment and an increase in capital

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Correct Option: C

Location of the debit column 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. in contravention with particulars

  2. in front of the particulars column where the amount is debited

  3. in front of the particulars column where the amount is credited

  4. not present anywhere in the journal

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Correct Option: B

Book keeping is meant to show all the transactions.

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. Of the whole year

  2. Of the accounting period

  3. Of half year

  4. All of the above

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Correct Option: B

In the Sales Book ______ of goods 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. Cash sale

  2. Credit sale

  3. Budgeted sales

  4. All of the above

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Correct Option: B
Explanation:

A Sales book is a record of all credit sales made by a business. It is one of the secondary book of accounts and unlike cash sales which are recorded in cash book, sales book is only to record credit sales.

The amount entered in the sales book is on behalf of invoices supplied to purchasers.

The total of the purchases day book is posted periodically to the debit 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. Purchases account

  2. Cash book

  3. Journal proper

  4. None of these

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Correct Option: A

Purchases day book records ________________.

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 purchases

  2. All credit purchases

  3. Credit purchases of trading goods

  4. All of the above

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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. 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

Jan Dhan Account is an example 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. Current Account

  2. Fixed Deposit Account

  3. Zero Balance Account

  4. None of the above

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Correct Option: A

A credit balance in the book statement indicates _____________.

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 at bank

  2. Cash in hand

  3. Bank overdraft

  4. Overpayment to creditors

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Correct Option: A