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Recording and Posting of Cash Transactions Test 15

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Recording and Posting of Cash Transactions Test 15
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Weekly Quiz Competition
  • Question 1
    1 / -0
    Cash sales are recorded in ___________.
    Solution
    The Journal Entry for Cash Sales is 
    Cash a/c              Dr.  
         To Sales a/c      
    (Being Goods sold for cash)

    So, Cash will increase therefore, it will be recorded in the cash book. 

  • Question 2
    1 / -0
    Balance of cash column in cash book has ____________.
    Solution
    Total of the debit side of the cash book or cash A/c always exceeds its credit side because payments of a business cannot exceed the receipts amount. So, the cash book shows debit balance. When payments are exactly equal to the receipt of the business, it will show zero balance, but it can never show the credit balance. Therefore, Balance of Cash book is always Debit or Zero.
  • Question 3
    1 / -0
    If a transaction involves both cash and bank account, it is entered on both sides of the cash book, one in the cash column and second in the bank column, though on opposite sides. This is called a _____________.
    Solution
    The term contra refers to the opposite side. 
    Contra entries are those entries in which the same account can be debited and credited.   
    In case where the transaction involves both cash and bank, it is entered on both, debit and credit side of the cash book and hence such entry is called a contra entry.
  • Question 4
    1 / -0
    An allowance of Rs $$50$$ was offered for an early payment of cash of Rs $$1,050$$. It will be recorded in ____________.
    Solution
    As cash is received therefore, it will be recorded in the cash book.
  • Question 5
    1 / -0
    Rs $$3,50,000$$ cash paid to creditors for settlements of credit purchases will be recorded in _______________.
    Solution
    As amount is paid to creditor therefore, it will affect cash balance therefore, it will be recorded in the cash book.
  • Question 6
    1 / -0
    Salary paid in cash - Rs $$50,000$$ will be recorded in ____________.
    Solution
    The Journal Entry for above transaction will be
    Salary a/c          Dr.         50,000
         To Cash a/c                             50,000
    (Being salary paid in cash Rs. 50,000)
     As salary is paid in cash therefore, it shall be recorded in cash book.
  • Question 7
    1 / -0
    Payments in cash of small amounts like travelling expenses, postage, carriage, etc. are recorded in the ______________.
    Solution

    Petty Cash Book is an accounting book used for recording expenses which are small and of little value, for example, stamps, postage and handling, stationery, carriage, daily wages, etc.
  • Question 8
    1 / -0
    Accounting for recovery from Mr. C of an amount of Rs $$2,000$$ earlier written off as bad debt will be recorded in _____________.
    Solution
    The Journal Entry
    Cash a/c                             Dr.    2000
        To Bad debts recovered a/c             2000
    (Being amount recovered from Mr. C of Rs 2,0002,000 earlier written off as bad debt)
    As cash is received therefore, it will be recorded in the cash book.
  • Question 9
    1 / -0
    Sold furniture on cash for Rs $$1,50,000$$ will be recorded in ______________.
    Solution
    The Journal Entry for this transaction is
    Cash a/c         Dr.
         To Furniture a/c 
    when furniture is sold for cash then the cash is received which will be recorded in the cash book. 
  • Question 10
    1 / -0
    Purchase of furniture on cash for  Rs $$1,50,000$$ will be recorded in _____________.
    Solution
    The Journal Entry for above transaction 
    Furniture a/c      Dr.  1,50,000
        To Cash a/c                          1,50,000
    (Being Furniture purchased for cash Rs. 1,50,000)

    As it is purchased for cash therefore, it will be recorded in cash book.
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