Tag: subsidiary books - 2

Questions Related to subsidiary books - 2

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

  1. True

  2. False


Correct Option: A

Petty cashier records petty cash received on debit side.

  1. True

  2. False


Correct Option: A
Explanation:

Cash received by the petty cashier is recorded on debit side and all payments for petty expenses are recorded on credit side in one column.

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

  1. True

  2. False


Correct Option: A

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


Correct Option: A

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


Correct Option: B

Which of the following is not a column of a three-column cash book ? 

  1. Discount Column

  2. Petty Cash Column

  3. Bank Column

  4. Cash Column


Correct Option: B

The balance in the petty cash book is __________.

  1. A liability

  2. An asset

  3. A profit

  4. An expense


Correct Option: B

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


Correct Option: D

Cash discount is recorded in ______________.

  1. Journal proper

  2. Purchase Journal

  3. Sales account

  4. Cash book


Correct Option: D

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


Correct Option: A