Tag: subsidiary books - 2

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Questions Related to subsidiary books - 2

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

Cash book records ________________.

  1. Cash payments

  2. Cash Receipts

  3. Cash payments and cash receipts

  4. Neither cash payments nor cash receipts
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Cash Book is a specialized journal designed to record all cash receipts on the debit side and all cash payments on the credit side. It is a comprehensive record of cash flow.

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

Double entry of which of the following transactions is completed in the Cash Book itself _______________.

  1. Paid rent by cheque

  2. Withdrew from bank for personal use

  3. A cheque received from a customer deposited into bank on the same day

  4. Cash deposited into the bank
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A contra entry occurs when a transaction affects both the cash and bank accounts. Depositing cash into the bank is recorded on the credit side (cash column) and the debit side (bank column) of the same cash book.

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

For opening Joint Bank Account, in case of separate set of books _________________.

  1. Joint Venture A/c will be debited and Venturers Capital A/c will be credited.

  2. Joint Bank A/c is debited and Venturers Capital A/c is credited.

  3. Joint Venture A/c is debited and Joint Bank A/c will be credited.

  4. Joint Bank A/c will be debited and Joint Venture A/c will be credited.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When separate books are maintained for a joint venture, the Joint Bank Account acts as the primary repository for funds. Contributions from venturers are deposited into this account, resulting in a debit to the Joint Bank Account and a credit to the respective Venturers Capital Accounts.

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

When the record of transactions relating to joint venture are made in the books of one party, then the venturer recording the transactions records his share of investment by _____________.

  1. Debiting cash account

  2. Crediting his personal account

  3. No entry is made

  4. Crediting Cash A/c
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When only one party keeps the books for a joint venture, they record their own investment by crediting their cash account (or bank) and debiting the Joint Venture account. This reflects the outflow of their own funds into the venture.

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

In which order the accounting transactions and events are recorded in the books ?  

  1. Journal, Subsidiary books, Ledger and Trial Balance.

  2. Ledger, Journal, Ledger, and Trial Balance.

  3. Subsidiary books, Ledger, and Trial Balance and Journal.

  4. Profit and loss account, Ledger, Balance sheet, Journal.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The standard accounting cycle begins with recording transactions in the journal or subsidiary books, followed by posting to the ledger, and finally summarizing in the trial balance.

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

A cheque of Rs. 112 received from a debtor recorded in the cash book but omitted to be banked. When balance as per Cash Book is the starting point.

  1. Rs. 112 to be added

  2. Rs. 112 to be subtracted

  3. No adjustment is required

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If a cheque is received and recorded in the cash book but not deposited, the cash book balance is higher than the bank passbook balance. When starting with the cash book balance, this amount must be subtracted to reconcile.

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

The payment side of the Cash Book (Bank Column) was under cast by Rs. 112. When the balance as per Cash Book is the straight point __________ .

  1. Rs. 112 to be added

  2. Rs. 112 to be subtracted

  3. No adjustment is required

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If the payment side of the cash book is undercast, the total payments recorded are lower than they should be, making the cash book balance artificially high. To reconcile from the cash book balance, this error must be subtracted.