Recording and Posting of Cash Transactions Test 12

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Recording and Posting of Cash Transactions Test 12

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Weekly Quiz Competition

Question 1
1 / -0

Rent due for the month of March will appear _______________.

A
On the payment side of the cash book

B
On the receipt side of the cash book

C
Nowhere in the cash book

D
As a contra entry
Question 2
1 / -0

Cash Book is in the form of _____________.

A
Journal

B
An account

C
Statement

D
All of the above

Solution

Cash book is same as a ledger account.
Cash Book is a subsidiary book that records all the cash receipts and cash payments. The Balance of the Cashbook can never be credit as it always has a debit balance or zero balance.
There are mainly Four types of Cash Books
1. Simple Cashbook
2. Two-column Cash Book
3. Three Column Cash Books.
4. Petty Cash Book
Question 3
1 / -0

Petty Cash Book may be treated as a __________________.

A
Part of the double entry system

B
Merely as a memoranda book

C
Either (A) or (B)

D
None of the above

Solution

Petty Cash Book may be treated as a Merely as a memoranda book
Question 4
1 / -0

Which of the following is/are advantages of the imprest system?

A
It saves the time of chief cashier

B
It reduces the chances of misuse of cash by the petty cashier.

C
It enables a great saving to be effected in the posting of small items to the ledger accounts.

D
All of the above
Question 5
1 / -0

Which of the following by is incorrect?

A
Every payment made by the petty cashier should be supported by evidence.

B
Regularly petty cashier is reimbursed to make up his cash balance to the imprest.

C
The petty cash book could be either a subsidiary book or a main book of accounts.

D
In emergency the petty cashier may give staff loans of small amounts.

Solution

The amount of petty cash very small therefore, it can not be used for giving loans.
Question 6
1 / -0

Payments in cash of small amounts like travelling expenses, postage, carriage etc. are recorded in the ________________.

A
Main Cash book

B
Petty cash book.

C
Cash budget

D
Journal proper

Solution

Payments in cash of small amounts like travelling expenses, postage, carriage etc. are recorded in the Petty Cash Book.
The Cashier who maintains the Petty cash Book is known as Petty Cashier.
There are two types of Petty Cash Book
1. Simple Petty Cash Book
2. Analytical Petty Cash Book
Question 7
1 / -0

Maintaining petty cash book is ______.

A
Mandatory

B
Necessary

C
Dependant on nature of business

D
All of the above

Solution

Petty cash book - This is used to record petty expenses like postage. cartage. printing and stationery etc in the day to day business activities.
In big organisation, it is not possible to maintain petty expenses for main cashier. In small organisation the number of petty Expenses is less so such a book can be maintained by cashier. Maintaining such a book is not compulsory.
So, maintaining petty cash book is dependent on nature of business.
Question 8
1 / -0

Which book of prime entry is also a ledger account?

A
Cash Book

B
Journal

C
Purchases journal

D
Sales Journal

Solution

Cash book is a unique kind of subsidiary book. It plays a dual role. It acts as the book of original entry or prime entry and also as ledger. It is a subsidiary book because entries are first posted in the cash book and then, from there, it is posted in other ledger accounts.
Question 9
1 / -0

In which book does the cash sales will be recorded?

A
Cash Book

B
Purchase Book

C
General Journal

D
Sales Book

Solution

Cash book is a journal in which all cash receipts and payments (including bank deposits and withdrawals) are recorded first, in chronological order, for posting to general ledger. Cash book is regularly reconciled with the bank statements as an internal auditing measure. It is used to record all the receipts and payments of cash.
Question 10
1 / -0

A General Cash book acts as a __________.

A
Journal

B
Ledger

C
Both

D
None

Solution

A cashbook is a book of prime entry in which cash and bank transactions of business are recorded. It acts as a book of original entry and a ledger. Hence, it is both Journal and Ledger.

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Re-Attempt Weekly Quiz Competition

Recording and Posting of Cash Transactions Test 12

Result

Recording and Posting of Cash Transactions Test 12

Score

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Rank

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SHARING IS CARING

Question 1

On the payment side of the cash book

On the receipt side of the cash book

Nowhere in the cash book

As a contra entry

Question 2

Journal

An account

Statement

All of the above

Solution

Question 3

Part of the double entry system

Merely as a memoranda book

Either (A) or (B)

None of the above

Solution

Question 4

It saves the time of chief cashier

It reduces the chances of misuse of cash by the petty cashier.

It enables a great saving to be effected in the posting of small items to the ledger accounts.

All of the above

Question 5

Every payment made by the petty cashier should be supported by evidence.

Regularly petty cashier is reimbursed to make up his cash balance to the imprest.

The petty cash book could be either a subsidiary book or a main book of accounts.

In emergency the petty cashier may give staff loans of small amounts.

Solution

Question 6

Main Cash book

Petty cash book.

Cash budget

Journal proper

Solution

Question 7

Mandatory

Necessary

Dependant on nature of business

All of the above

Solution

Question 8

Cash Book

Journal

Purchases journal

Sales Journal

Solution

Question 9

Cash Book

Purchase Book

General Journal

Sales Book

Solution

Question 10

Journal

Ledger

Both

None

Solution

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