Tag: triple column cash book

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Questions Related to triple column cash book

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

In which order the accounting transactions and events are recorded in the books ?  

  1. Journal, Subsidiary books, Ledger and Trial Balance.

  2. Ledger, Journal, Ledger, and Trial Balance.

  3. Subsidiary books, Ledger, and Trial Balance and Journal.

  4. Profit and loss account, Ledger, Balance sheet, Journal.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The standard accounting cycle begins with recording transactions in the journal or subsidiary books, followed by posting to the ledger, and finally summarizing in the trial balance.

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

A cheque of Rs. 112 received from a debtor recorded in the cash book but omitted to be banked. When balance as per Cash Book is the starting point.

  1. Rs. 112 to be added

  2. Rs. 112 to be subtracted

  3. No adjustment is required

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If a cheque is received and recorded in the cash book but not deposited, the cash book balance is higher than the bank passbook balance. When starting with the cash book balance, this amount must be subtracted to reconcile.

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

The payment side of the Cash Book (Bank Column) was under cast by Rs. 112. When the balance as per Cash Book is the straight point __________ .

  1. Rs. 112 to be added

  2. Rs. 112 to be subtracted

  3. No adjustment is required

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If the payment side of the cash book is undercast, the total payments recorded are lower than they should be, making the cash book balance artificially high. To reconcile from the cash book balance, this error must be subtracted.

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

One outgoing Cheque of Rs. 112 recorded in the Cash Book but omitted to be sent to creditor. When the balance as per Cash Book is the starting point ___________________.

  1. Rs. 112 to be added

  2. Rs. 112 to be subtracted

  3. No adjustment is required

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

Recording a cheque as a payment in the cash book reduces the cash book balance, but since it was not sent to the creditor, the actual bank balance is higher. To reconcile from the cash book, the amount must be added back.

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

One outgoing cheque of Rs. 112 was recorded twice in the Cash Book. When the balance as per Cash Book is the straight point.

  1. Rs. 112 to be added

  2. Rs. 112 to be subtracted

  3. No adjustment is required

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

Recording a payment twice in the cash book reduces the balance by double the amount. To correct this when starting from the cash book balance, the extra amount must be added back.

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

One outgoing cheque of Rs. 112 recorded as Rs. 121 in the cash column is the Cash Book. (Note: The cheque was presented in the bank). When the balance as per Cash Book is the straight point.

  1. Rs. 112 to be subtracted

  2. Rs. 121 to be subtracted

  3. Rs. 9 to be added

  4. Rs. 112 to be added
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The cash book was credited for 121 instead of 112, meaning the cash book balance was reduced by 9 more than it should have been. To reconcile from the cash book, the difference of 9 should be added, but since the bank actually paid 112, the net adjustment requires subtracting the original 112 to align with the bank's actual deduction.

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

A cheque received from a debtor for Rs. 112 deposited but omitted to be recorded in the cash column in the cash-Book (Note: Bank has collected and  credited this cheque)
When the balance as per Cash Book is the starting point. 

  1. Rs. 112 to be added

  2. Rs. 121 to be added

  3. Rs. 9 to be subtracted

  4. Rs. 112 to be subtracted
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The bank collected the money, but it was not recorded in the cash book. Therefore, the bank balance is higher than the cash book balance. To reconcile from the cash book, the amount must be added.

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

In triple column cash book, cash withdrawn from bank for office use will appear in ___________.

  1. Debit side of the cash book only

  2. Both sides of the cash book

  3. Credit side of the cash book only

  4. Credit side of the bank account
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Cash withdrawn from bank for official use will give two effects in cash book. Cash book is carrying cash and bank both columns. Hence withdrawal of cash from bank reduces the bank balance and increases the cash balance.