Tag: bank book and petty cash book

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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

It is not possible to make a journal entry without a proper ___________ voucher which gives all details of an accounting transaction.

  1. Cash

  2. Debit

  3. Credit

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

A Journal voucher is a voucher that consists of all the details of transactions like the date of transactions, amount, etc. A journal voucher is prepared for every transaction. It is the basis for making a journal. They are serially numbered for convenience purpose so that journal can be prepared.  A journal voucher keeps a record of all the transactions hence helps in the recording or transactions and making of journal.

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

Cash vouchers are of ______________ types.

  1. One

  2. Two

  3. Three

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

Cash vouchers are of two types viz. debit voucher and credit voucher. A debit voucher is prepared when cash payments are received whereas a credit voucher is prepared when cash payments are made. They are the documentary evidence for payment of cash or for receiving cash. 

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

State whether true or false:
In order to verify the accounting transactions, vouchers are considered as a reliable document.

  1. True

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

True. Voucher is a document that acts as an evidence that the payment is made or that a particular transaction has occurred. Vouchers are made for every transactions, they are serially numbered and help to check the authenticity of a particular transaction.

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

The two types of cash vouchers include debit vouchers and ____________ vouchers.

  1. Credit

  2. Memo

  3. Receipt

  4. Payment
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Cash vouchers are of two types viz. debit voucher and credit voucher. A debit voucher is prepared when cash payments are received whereas a credit voucher is prepared when cash payments are made. They are the documentary evidence for payment of cash or for receiving cash.

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

State whether true or false.
Internal vouchers are prepared by third parties related to the firm.

  1. True

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

False. An internal voucher is prepared by the organisation itself. They can be prepared for the organisation itself or in cases where no documentary evidence is given by the other party. Example:- Counter foils of pay in slip. An external voucher is a voucher that is prepared by the third parties. Example:- A voucher sent by a shopkeeper to the buyer for purchase of goods is an external voucher. 

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

External vouchers are prepared by the ___________.

  1. Accountant

  2. Third parties

  3. Relatives

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

An external voucher is a voucher that is prepared by the third parties. They are like bills or just like any other voucher. Example:- A voucher sent by a shopkeeper to the buyer for purchase of goods is an external 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

Goods destroyed by fire should be credited to______.

  1. Purchases account

  2. Sales account

  3. Loss of goods by fire account

  4. Insurance account
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Loss of goods by fire, it is just possible that some goods may catch fire and result in loss to the business. This is definitely loss, so "Loss of goods by fire" account will be debited. Such goods have been destroyed, not sold, so their  valuation will be made at cost price. So, purchases account will be credited. The journal entry for this transaction will be made as under:


Loss of goods by fire A/c       Dr.
       To Purchases A/c

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

Wages paid for erection of machinery are debited to ____________.

  1. Wages Account

  2. Machinery Account

  3. Profit and Loss Account

  4. Deferred Wages Account
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

All incidental charges incurred for installation of assets are charged to the cost of that asset. Wages paid on erection of machinery is a capital expenditure and will be debited to machinery account.

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 account may have a debit or credit balance?

  1. Discount received account

  2. Sales account

  3. Trade expenses account

  4. Loan account
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A debit balance increases the balance in an expense account and a credit balance decreases the balance. Loan account may have debit or credit balance i.e. when a business secures a loan it records it as an increases in the appropriate asset account and corresponding increases in an account called loan. 

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

When A advances money to B in the course of joint venture then A debits such money to a _________.

  1. Joint bank account

  2. Joint venture account

  3. B's personal account

  4. Expenses account
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A joint venture is an entity which is created by two or more parties to accomplish a particular project. For this a joint venture account is separately maintained. If any amount is spent for joint venture, this will be debited to joint venture account.