Tag: subsidiary books - 2

Questions Related to subsidiary books - 2

One outgoing Cheque of Rs. 112 recorded in the Cash Book but omitted to be sent to creditor. When the 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


Correct Option: A

One outgoing cheque of Rs. 112 was recorded twice in the Cash Book. 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


Correct Option: A

One outgoing cheque of Rs. 112 recorded as Rs. 121 in the cash column is the Cash Book. (Note: The cheque was presented in the bank). When the balance as per Cash Book is the straight point.

  1. Rs. 112 to be subtracted

  2. Rs. 121 to be subtracted

  3. Rs. 9 to be added

  4. Rs. 112 to be added


Correct Option: A

Returns of goods sold for cash Rs. 500 to Ram are recorded in ______.

  1. Sales Book.

  2. Sales Returns Book.

  3. Journal Proper.

  4. Cash Book.


Correct Option: D

A cheque received from a debtor for Rs. 112 deposited but omitted to be recorded in the cash column in the cash-Book (Note: Bank has collected and  credited this cheque)
When the balance as per Cash Book is the starting point. 

  1. Rs. 112 to be added

  2. Rs. 121 to be added

  3. Rs. 9 to be subtracted

  4. Rs. 112 to be subtracted


Correct Option: A

A debit in a nominal account denotes an __________.

  1. income

  2. loss

  3. revenue

  4. expense


Correct Option: D

In triple column cash book, cash withdrawn from bank for office use will appear in ___________.

  1. Debit side of the cash book only

  2. Both sides of the cash book

  3. Credit side of the cash book only

  4. Credit side of the bank account


Correct Option: B
Explanation:

Cash withdrawn from bank for official use will give two effects in cash book. Cash book is carrying cash and bank both columns. Hence withdrawal of cash from bank reduces the bank balance and increases the cash balance. 

When can mistake apparent on record be corrected?

  1. When mistake noticed by authority passing the order

  2. When mistake pointed out by corresponding officer of SGST

  3. When mistake pointed by person affected by the order

  4. All of the above


Correct Option: D

Excess of bank withdrawal over bank deposits __________.

  1. Overdraft

  2. Cash balance

  3. Bank balance

  4. Loan


Correct Option: A
Explanation:

The opening cash and bank balances are recorded on the debit side of the cash book. Sometimes a businessman withdraws excess amount from the bank (from his bank account) and the closing bank balance of a month is a credit balance. This balance amount is called 'Bank Overdraft'. It is written on the credit side of the bank column of the cash book as opening balance.

A cash book written in local language by Munimji to record all types of transaction.

  1. Cash book

  2. Petty cash book

  3. Conventional Cash book

  4. Modern cash book


Correct Option: C