Recording of Transactions

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Recording of Transactions - II Test 11

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Weekly Quiz Competition

Question 1
1 / -0

The cash book records only________.

A
All cash receipts

B
All cash payments

C
Both (A) and (B)

D
Only cash and credit sale of goods

Solution

Cash book is a book in which all transactions relating to cash receipts and cash payments are recorded. It starts with the cash or bank balances at the beginning of the period. Generally, it is made on a monthly basis.

This is a very popular book and is maintained by all organisations, big or small, profit or not-for profit. It serves the purpose of both journal as well as the ledger (cash) account. It is also called the book of original entry.

When a cashbook is maintained, transactions of cash are not recorded in the journal, and no separate account for cash or bank is required in the ledger.
Question 2
1 / -0

The closing balance of the petty cash book is_______.

A
Expense/expenditure

B
Profit/ gain

C
Assets

D
Liability

Solution

The closing balance of petty cash book is considered as Asset.
Petty Cash is a current asset account; it is part of a company's cash.

Petty cash Book is just like a cash book , its just that this book maintains petty cash expenses separately as against the normal cash book .
Therefore, balance of petty cash book is an asset & an not income. Its used for paying out petty expenses.
Question 3
1 / -0

_________column of cash book is never balanced.

A
Discount

B
Cash

C
Bank

D
None

Solution

In a Triple column cash book, we have cash, bank and discount columns. The discount column on the debit side is the discount allowed which is an expense. Whereas the discount column on the credit side is the discount received which is an income.
Thus, the discounts columns are never balanced as they both have a different nature. However, cash and bank columns are always balanced.
Thus, the correct option is A.
Question 4
1 / -0

_______ column of cash book can have credit opening or closing balance.

A
Cash

B
Discount

C
Bank

D
(B) and (C)

Solution

The bank column is balanced in the same way as the cash column.
However, in the bank column, there can be credit balance also because of overdraft taken from the bank. Overdraft is a situation when cash withdrawn from the bank exceeds the amount of deposit. Entries in respect of cheque received should be made in the bank column of the cash book. Bank column of cash book can have a credit opening or closing balance.
Question 5
1 / -0

_________column of a cash book cannot have credit closing balance.

A
Cash column

B
Discount column

C
Bank column

D
All of three

Solution

Cash column of a cash book cannot have credit closing balance as cash can not be negative.
Either the business will have some cash or there will be no cash. But it can not be negative.
Therefore, cash account has either debit balance or Zero balance.
Question 6
1 / -0

In petty cash book________column records receipts.

A
extreme left hand

B
extreme right hand

C
centre column left hand side

D
centre column right hand side

Solution

In petty cash book extreme left hand column records receipts.
Question 7
1 / -0

Cheques received but not banked is generally shown in__________column of Cash Book.

A
Cash

B
Discount

C
Bank

D
None

Solution

If the cheque is not deposited into the bank then it is assumed as cash therefore, it will be recorded in the cash column of the cash book.
But if the same cheque is deposited into the bank on the same day then it will be recorded in the Bank Column of the Cash Book.
Question 8
1 / -0

In cash book with discount column, total of discount column of credit side of the cash book is posted to the________.

A
Dr. of Discount Allowed A/c

B
Dr. of Discount Received A/c

C
Cr. of Discount Allowed A/c

D
Cr. of Discount Received A/c

Solution

One more type of cash book is triple column cash book. Three columns are cash, bank and discount column where cash discount allowed and cash discount received are recorded in discount column.
Total of cash discount received is to be posted to the credit of discount received account.
Question 9
1 / -0

Cash account/ book is prepared on ________.

A
Accrual Basis

B
Receipt Basis

C
Both Basis

D
Either A or B

Solution

Cash book prepared on receipt basis that it a transaction is recorded as when there is an inflow or outflow of cash
There are mainly 4 types of Cash Book
1. Single Column Cash Book
2. Double Column Cash Book
3. Three Column Cash Book
4. Petty Cash Book
Question 10
1 / -0

_______does not exist in the three column cash book.

A
Cash Column

B
Bank Column

C
Petty Cash Column

D
Discount Column

Solution

There is no column as petty Cash column in three column cash book.

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Re-Attempt Weekly Quiz Competition

Recording of Transactions - II Test 11

Result

Recording of Transactions - II Test 11

Score

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Rank

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SHARING IS CARING

Question 1

All cash receipts

All cash payments

Both (A) and (B)

Only cash and credit sale of goods

Solution

Question 2

Expense/expenditure

Profit/ gain

Assets

Liability

Solution

Question 3

Discount

Cash

Bank

None

Solution

Question 4

Cash

Discount

Bank

(B) and (C)

Solution

Question 5

Cash column

Discount column

Bank column

All of three

Solution

Question 6

extreme left hand

extreme right hand

centre column left hand side

centre column right hand side

Solution

Question 7

Cash

Discount

Bank

None

Solution

Question 8

Dr. of Discount Allowed A/c

Dr. of Discount Received A/c

Cr. of Discount Allowed A/c

Cr. of Discount Received A/c

Solution

Question 9

Accrual Basis

Receipt Basis

Both Basis

Either A or B

Solution

Question 10

Cash Column

Bank Column

Petty Cash Column

Discount Column

Solution

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