Tag: three column cash book

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Questions Related to three column cash book

Multiple choice commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

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
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A mistake apparent on the record can be corrected by the authority that passed the order, upon the request of an affected party, or by official notice. All these scenarios allow for the rectification of such errors.

Multiple choice commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

Excess of bank withdrawal over bank deposits __________.

  1. Overdraft

  2. Cash balance

  3. Bank balance

  4. <span>Loan</span>
Reveal answer Fill a bubble to check yourself
A Correct answer
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.

Multiple choice commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

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

  1. Cash book

  2. Petty cash book

  3. <span>Conventional Cash book</span>

  4. Modern cash book
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A conventional cash book is the traditional form used for recording all cash transactions, often maintained in local languages or traditional formats by bookkeepers.

Multiple choice commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

A three-column Cash Book will disclose a bank overdraft when there is __________.

  1. debit balance of cash column

  2. credit balance of cash column

  3. debit balance of bank column

  4. credit balance of bank column
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An overdraft occurs when the bank balance is negative. In a three-column cash book, a negative bank balance is represented by a credit balance in the bank column.

Multiple choice commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

Contra entries are passed only when ____________.

  1. double-column cash book is prepared

  2. three-column cash book is prepared

  3. simple cash book is prepared

  4. all of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Contra entries require both a cash column and a bank column to be present in the same book, which is a feature of a double-column or three-column cash book.

Multiple choice commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

Which of the following will be recorded as Contra Entry?

  1. Withdrew from bank for personal use

  2. A cheque received from X lodged into bank on the same day

  3. A cheque received from Y a week earlier lodged into bank

  4. A customer directly deposited the money in our bank account
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A contra entry occurs when a transaction affects both the cash and bank columns of the cash book. Depositing a cheque received earlier into the bank involves moving funds from 'cash in hand' (or cash transit) to the bank account, which is a contra entry.

Multiple choice commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

Salaries due for the month will appear________.

  1. On the receipt side of the cash book

  2. On the payment side of the cash book

  3. As a contra entry

  4. Nowhere in the cash book.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Salaries due represent an outstanding liability rather than an actual cash outflow. Since the cash book only records actual receipts and payments of cash or bank transactions, an accrual does not appear in it.

Multiple choice commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

In arriving at adjusted cash balance which of the following is not taken into account?

  1. Amount deposited by our customer direct into our bank account

  2. Errors in the cash book

  3. Errors in the pass book

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

An adjusted cash book is prepared to update the cash book balance for items already recorded by the bank but not yet in the cash book. Errors in the pass book are bank-side issues that are reconciled in the Bank Reconciliation Statement, not the cash book itself.