Tag: subsidiary books - 2

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Questions Related to subsidiary books - 2

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

Jornal entry for recording wages expense in petty cash book is __________.
      Wages A/c        Dr.
              To Petty Cash A/c.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When a petty cash payment is made for wages, the expense account (Wages) is debited and the Petty Cash account is credited to reflect the reduction in cash.

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

Posting in the ledger from Analytical Petty Cash Book is made at the end of the period.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In an analytical petty cash book, individual transactions are recorded daily, but the totals for each expense category are posted to the main ledger at the end of the accounting period.

Multiple choice commercial studies subsidiary books - 2 petty cash book meaning, importance and components of voucher bank book and petty cash book

When using a petty cash system, the replenishment of the fund would normally include a debit to _______________.

  1. Cash.

  2. Petty Cash.

  3. Revenues.

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Replenishment involves the main cashier giving cash to the petty cashier. The entry involves debiting the Petty Cash account (to increase it) and crediting the main Cash account.

Multiple choice commercial studies subsidiary books - 2 petty cash book meaning, importance and components of voucher bank book and petty cash book

Payments in cash of small amounts like travelling expenses, postage, carriage,etc. are recorded in the ______________.

  1. Main Cash Book

  2. Petty Cash Book

  3. Cash Budget

  4. Journal proper
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Small, frequent payments are handled through the petty cash system to keep the main cash book uncluttered and to delegate minor financial responsibilities.

Multiple choice book keeping and accountancy subsidiary books - 2 three column cash book three columnar cash book triple column cash book

Which of the following subsidiary books serves the purpose of ledger too, in addition to the recording of accounting transaction?

  1. Purchases book

  2. Sales book

  3. Bills receivable book

  4. Cash Book
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Cash Book serves as a book of original entry (journal) for cash transactions and also functions as a ledger account for cash and bank balances. Other subsidiary books like the Purchases or Sales book only record specific types of credit transactions and do not function as ledger accounts.

Multiple choice commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

Cash discount is recorded in ______________.

  1. Journal proper

  2. Purchase Journal

  3. Sales account

  4. Cash book
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Cash discounts are typically recorded in the discount column of a three-column cash book. Since the cash book is the primary record for cash and bank transactions, it is the appropriate place for these entries.

Multiple choice commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

Receipts and Payments Account is an abbreviated form of ___________________.

  1. Cash Book

  2. Pass Book

  3. Both Cash Book and Pass Book

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Receipts and Payments Account is essentially a summary of the cash book for a specific period. It is commonly used by non-profit organizations to show all actual cash inflows and outflows.