Ledger Trial Balance and BRS Test - 1

Explanation:

As different subsidiary books are maitained it becomes conveninet in handling and maintaining the books. and thus the above option is not the advantage of subsidiary book.

Explanation:

In this an amount is fixed and advanced to the petty cashier in order to meet petty expenses.this is called imprest or float system.

Explanation:

Only cash transactions are recorded in the cash book. Non-cash aspect of transaction is not recorerded in the cash book, i.e. credit trasnaction it is recorded in other books

Explanation:

Only purchase of goods i.e in which trading concern deals is recorded in purchase journal. and asset purchased for cash or credit will be recorded in the journal proper.

Explanation:

When Assets increases , we debit the said asset account.

Explanation:

Trade discount is not recorded in the books, only net amount  i.e. (list price- trade discount) is recorded. and cash discount is allowed when discount is allowed during receiving/ paying cash. and separate discount account is opened in the books of accounts for recording cash discount.

Explanation:

cash book is a subsidairy book as it is prepared to record entries related to cash transactions. Those transactions are not recorded in the journal book that is why cash book is called subsidiary book.

Explanation:

Payment of bank loan will reduce the cash/bank balance, i.e. asset side and also our liability of bank loan will reduce, thus assets : decrease, liablities : decrease.

Explanation:

As the owner invests personal cah in the business, cash which comes on asset side increases and capital i.e. equity also increases as owner's investment in the business increase.

Explanation:

All cash transactions whether purchase or sale are recorded in cash book