Tag: meaning, importance and components of voucher

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Questions Related to meaning, importance and components of voucher

Multiple choice book keeping and accountancy origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents

Which of the following accounts have only credit balance?

  1. Accounts payable account

  2. Salaries outstanding account

  3. Reserve fund account

  4. All of the above accounts
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An accounts assigned normal balance is on the side where increases go because the increases in any account are usually greater than the decreases. Therefore, asset, expense, and owner's drawing accounts normally have debit balances. Liabilities, revenue, and owner's capital accounts normally have credit balances.

Multiple choice business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

Which among the following is an example of a voucher? 

  1. A bill

  2. An Invoice

  3. A Receipt

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Any documentary evidence supporting the entries recorded in the books of accounts, establishing the arithmetic accuracy of the transaction, may also be referred to as a voucher for example, a bill, invoice, receipt, salary and wages sheet.

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

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

  1. To record particular item of expenditure.

  2. To record particular item of receipts.

  3. Both (a) and (b)

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

An analytical petty cash book uses multiple columns to categorize various types of small expenditures (like postage, stationery, or travel) for easier tracking and ledger posting.

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

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

  1. True

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

When a petty cashier submits accounts, the expenses are recorded in the ledger. The entry should be Expenses A/c Dr. to Petty Cash A/c, not the reverse.

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.