Recording and Posting of Cash Transactions Test 5

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Recording and Posting of Cash Transactions Test 5

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Question 1
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 Overdraft is a situation when cash withdrawn from the bank exceeds the amount of deposit.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 2
1 / -0

Cash Book is a_______book.

A
principal book

B
subsidiary book as well as principal book

C
kaccha book

D
ledger itself

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 monthly basis. This is a very popular book and is maintained by all organizations, big or small, profit or not-for-profit. It serves the purpose of both journals as well as ledger (cash) account. It is a subsidiary book and also called a book of original entry/principal book. When a cash book 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 3
1 / -0

On the credit side of cash book/account______are shown.

A
Capital Receipts

B
Revenue Receipts

C
All types of Payments

D
Cash Payment

Solution

Cash Book is divided into two side -

1. Debit Side (also known as the Receipts Side) ; When there is increase in cash then it is recorded in Debit Side because Debit is All increase in assets.

2. Credit Side (Also Known as the Payments Side) : When there is decrease in cash then it is recorded in credit Side because credit is All decrease in assets.

Therefore, on the credit side of cash book/account all types of payments are shown.
Question 4
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 5
1 / -0

On the debit side of cash book/account______are shown.

A
Capital receipts

B
Revenue receipts

C
All types of receipts

D
Cash payment

Solution

Cash Book is a subsidiary book that records all the cash transactions whether it is revenue in nature or capital in nature. All the capital and revenue receipts and payments are recorded in the cash book.
Cash Book serves the purpose of both Journal and ledger. There is no need to prepare a cash account if the cash book is being maintained.
There are two sides to the Cash Book.
The Debit side of the Cash Book is known as the Receipts side whereas the credit side is known as the Payment side.
Therefore, On the debit side of the cash book/account, all types of receipts are shown.
Question 6
1 / -0

_________ may be defined as the record of transaction concerning cash receipts and cash payment.

A
Cash book

B
Bank book

C
General journal

D
None of the above

Solution

Cash book is a book in which all transactions relating to cash receipts and cash payments are recorded. It starts with cash or bank valances at the beginning of the period. Generally. it is made on 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 cash book is maintained, transactions of cash are not recorded in the journal, and no separate account for cash and bank is required in the ledger.
Question 7
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 8
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 9
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.
Question 10
1 / -0

_________ is/are forms of a cash book.

A
Single column cash book

B
Double column cash book

C
Three column cash book

D
All of the above

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 monthly basis. This is a very popular book and is maintained by all the organisation, big or small, profit or not-for-profit. It serves the purpose of both journal as well as ledger account.
It is also called the book of original entry.
Single column cash book, Double column cash book and Three column cash book are all forms of a cash book.

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Re-Attempt Weekly Quiz Competition

Recording and Posting of Cash Transactions Test 5

Result

Recording and Posting of Cash Transactions Test 5

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SHARING IS CARING

Question 1

Cash

Discount

Bank

(B) and (C)

Solution

Question 2

principal book

subsidiary book as well as principal book

kaccha book

ledger itself

Solution

Question 3

Capital Receipts

Revenue Receipts

All types of Payments

Cash Payment

Solution

Question 4

Cash column

Discount column

Bank column

All of three

Solution

Question 5

Capital receipts

Revenue receipts

All types of receipts

Cash payment

Solution

Question 6

Cash book

Bank book

General journal

None of the above

Solution

Question 7

Accrual Basis

Receipt Basis

Both Basis

Either A or B

Solution

Question 8

All cash receipts

All cash payments

Both (A) and (B)

Only cash and credit sale of goods

Solution

Question 9

Cash Column

Bank Column

Petty Cash Column

Discount Column

Solution

Question 10

Single column cash book

Double column cash book

Three column cash book

All of the above

Solution

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