Tag: bank book and petty cash book

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Questions Related to bank book and petty cash book

Multiple choice elements of accounts cash book and its types petty cash book meaning, importance and components of voucher bank book and petty cash book

Perpetual inventory system involves ____________.

  1. bincard and stores ledger

  2. bill of material and material requisition

  3. purchase requisition and purchase order

  4. inward and outward invoices
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A perpetual inventory system maintains continuous records of inventory levels. This is achieved by tracking every receipt and issue of stock using documents like bincards and stores ledgers.

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

A cash memo is prepared and issued by__________.

  1. Buyer

  2. Seller

  3. Customer

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

A cash memo is prepared by the seller when the goods are sold for cash. The cash memo is similar to an invoice, only difference being invoice is issued for credit sale and cash memo for cash sales.

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

Which among the following information is contained in a cash memo will contain :
A) Details of goods or services sold
B) Price of items sold
C) Name and address of buyer

  1. A and B only

  2. B and C only

  3. A and C only

  4. A, B and C
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The cash memo contains the details of the goods and services sold, price of items sold, name and address of the buyer and also the date of purchase. The contents of cash memo and invoice are the same. 

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

A credit note is issued for cancelling the extra debit or wrong debit.

  1. True

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

A credit is issued by the shopkeeper to the buyer who returns the goods. It is issued to cancel the excess debit or wrong debit or to increase the credit which earlier given, was less. 

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

On the basis of the credit note, the seller records the _____________.

  1. Sales return book

  2. Purchase return book

  3. Sales book

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

A credit note is issued by the vendor to the buyer when the goods are returned by the buyer to the vendor. So, with the help of credit notes the vendor/seller can record all the entries of sales return because a credit note would be issued when goods are returned. 

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

A debit note is issued when _________________.

  1. Less debit was formerly given

  2. Less credit was formerly given

  3. To cancel the wrong debit

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

A debit note is note which is issued when less debit is given. It signifies the debt paying liability of a person. Debit note is issued to give additional debit and to cancel and extra credit.

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

A credit note is prepared for __________ the account of the counterpart.

  1. Debiting

  2. Crediting

  3. Nulifying

  4. Any of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A credit note is prepared for crediting the account of the counter part. A credit note is prepared when less credit is given or extra debit is given. It is issued by the supplier when the goods are returned by the buyer. It gives additional credit or cancels the excess credit by issuing a debit note.

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

A journal entry cannot be passed in a journal proper with the debit and credit note.

  1. True

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

False. A debit or credit note is used to rectify the extra short debit or credit is given. They have an advantage of not editing the books of original entry. A journal entries are passed with the help of journal voucher.