Tag: 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

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 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.