Tag: subsidiary books - 2

Questions Related to subsidiary books - 2

Rent outstanding for the month of February will appear_________.

elements of accounts subsidiary books - 2 understand the method of recording cash transactions simple cash boook recording and posting of cash transactions

  1. on the debit side of the cash book

  2. on the credit side of the cash book

  3. as a contra entry in the cash book

  4. no entry in the cash book

Show answer
Correct Option: D

Withdrawl column of the Pass Book showed a wrong entry of Rs. 112. When the balance as per Cash Book is the starting point __________.

elements of accounts subsidiary books - 2 understand the method of recording cash transactions simple cash boook recording and posting of cash transactions

  1. Rs. 112 to be added

  2. Rs. 112 to be subtracted

  3. No adjustment in required

  4. None of these

Show answer
Correct Option: B

A debit balance of Rs. 1,000 has been brought forward as a credit balance of Rs. 100 on the next page in the Pass Book. To ascertain the balance as per Cash Book _______________________.

elements of accounts subsidiary books - 2 understand the method of recording cash transactions simple cash boook recording and posting of cash transactions

  1. Rs. 900 should be added to the balance as per Cash Book.

  2. Rs. 900 should be subtracted from the balance as per Pass Book

  3. Rs. 1,100 should be added to the balance as per Pass Book

  4. None of the above.

Show answer
Correct Option: D

One outgoing cheque of Rs. 112 recorded as Rs. 121 in the Cash Book. (Note: This cheque was presented in the Bank). When the balance as per Cash Book is the starting point.

elements of accounts subsidiary books - 2 understand the method of recording cash transactions simple cash boook recording and posting of cash transactions

  1. Rs. 112 to be subtracted

  2. Rs. 121 to be subtracted

  3. Rs. 9 to be added

  4. Rs. 112 to be added

Show answer
Correct Option: C

Debit balance in cash book means __________.

elements of accounts subsidiary books - 2 understand the method of recording cash transactions simple cash boook recording and posting of cash transactions

  1. Overdraft as per pass book

  2. Overdraft as per cash book

  3. Credit balance as per pass book

  4. Debit balance as per day book

Show answer
Correct Option: C
Explanation:

The debit balance as per the cash book means the balance of deposits held at the bank. Such a balance will be a credit balance as per the passbook. Such a balance exists when the deposits made by the firm are more than its withdrawals.

Cash paid to Creditors needed for the construction of cash account can be ascertained from __________________ .

elements of accounts subsidiary books - 2 understand the method of recording cash transactions simple cash boook recording and posting of cash transactions

  1. Total creditors account

  2. Trading account

  3. Profit and loss account

  4. None of the above

Show answer
Correct Option: A
Explanation:

Single-entry accounting is a form of bookkeeping and accounting in which each financial transaction is a single entry in a journal or transaction log. As a result, the accounting system is called, not surprisingly, a single-entry system. And, the approach is also known as single-entry bookkeeping.

In single-entry bookkeeping informations related to accounts are incomplete.
In the given question if the amount of cash paid to creditors needed for the construction of cash account is not given or not available, it can be ascertained from total creditors account.

The amount listed for cash in the trial balance represents __________________.

elements of accounts subsidiary books - 2 understand the method of recording cash transactions simple cash boook recording and posting of cash transactions

  1. The cash at the beginning of the period.

  2. Cash receipts during the period.

  3. Cash receipts minus disbursements during the period.

  4. The balance of cash on the date of trial balance.

Show answer
Correct Option: D
Explanation:

A Trial Balance is a statement that states the closing balances of all the accounts at the end of the accounting period. Thus, similar to all the other accounts, the closing balance of cash and bank only appears in the Trial Balance.

Thus, the correct option is D.

In analytical petty cash book, for what purpose separate column is provided?

book keeping and accountancy subsidiary books - 2 petty cash book meaning, importance and components of voucher bank book and petty cash book

  1. To record particular item of expenditure.

  2. To record particular item of receipts.

  3. Both (a) and (b)

  4. None of the above.

Show answer
Correct Option: A

The balance in petty cah book represents ____________ .

book keeping and accountancy subsidiary books - 2 petty cash book meaning, importance and components of voucher bank book and petty cash book

  1. expenses

  2. net income

  3. cash-in-hand with petty cashier

  4. none of the above

Show answer
Correct Option: C

Journal entry on submission of accounts by the petty cashier is :-
          Petty Cash A/c               Dr.
                To Expenses A/c 

book keeping and accountancy subsidiary books - 2 petty cash book meaning, importance and components of voucher bank book and petty cash book

  1. True

  2. False

Show answer
Correct Option: B