Recording and Posting of Cash Transactions Test 7

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Recording and Posting of Cash Transactions Test 7

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Weekly Quiz Competition

Question 1
1 / -0

Cash purchase of new plant is initially recorded in ________.

A
Purchase Day Book

B
Cash Book

C
Plant A/c

D
Any of the Above

Solution

Irrespective of the nature of transaction i.e. revenue or assets, all cash transactions must initially recorded in cash book. Hence cash purchase of new plant will be recorded in cash book.
Question 2
1 / -0

Which of these will not be recorded in cash book/account?

A
Two months rent of Rs. 5000 paid in advance

B
One year insurance premium Rs.9000 paid in advance

C
Goods purchased on 3 months credit

D
Goods worth Rs. 5900 sold cash

Solution

The Journal Entry for Option 3 is
Purchases a/c Dr.
To Creditors a/c
Goods purchased on credit does not involve any outflow of cash therefore, it will not be recorded in the cash book.
Question 3
1 / -0

A cash purchase of trading goods will be recorded in...........

A
Purchase journal

B
Purchase A/c

C
Cash payment Journal

D
Petty cash book
Question 4
1 / -0

A petty cash book is meant for which of these payments.......

A
To pay small day to day expenses like postage, telegraph

B
To pay statutory liabilities like income tax, sales tax

C
To discharge bank obligations

D
To pay for purchase of trading goods

Solution

A petty cash book is meant for which of these payment to pay small day to day expenses like postage, telegraph.
Question 5
1 / -0

From the following details ascertain the adjusted bank balance as per Cash book .....
Overdraft as per Cash book Rs.80,000
Cheque received entered twice in the cash book Rs.5000
Credit side of bank column cast short by Rs. 500
Bank Charges amounting to Rs.200 entered twice
Cheque issued but dishonoured Rs. 2000

A
Rs.80,500

B
Rs. 85500

C
Rs.85000

D
Rs.85300
Question 6
1 / -0

Cash sales of trading goods is initially recorded in ________.

A
Sales Day Book

B
Cash Book

C
Directly n Sales A/c

D
All the above

Solution

Cash book is maintained by the business to record all the cash transactions i.e. expense and revenues. Cash sales of goods must be recorded in cash book on the date of sale itself.
Question 7
1 / -0

A credit purchase of trading goods will be recorded in .........

A
Purchase journal

B
Purchase A/c

C
Cash payment Journal

D
Petty Cash book
Question 8
1 / -0

A contra entry is one which ____________.

A
affects both the sides of the same A/c book

B
affects both the sides of the trial balance

C
affects one side of a real A/c and another side of a personal A/c

D
affects both the sides of the same types of A/c

Solution

A contra entry is an entry which affects both the sides of the same book of entry i.e. Double or Triple Column Cash Book. Whenever cash is deposited into the bank A/c or is withdrawn from the Bank A/c, Cash and Bank both the accounts get affected. It is shown by 'C' in the ledger folio column on both the sides of the Cash Book.
Thus, the correct answer is A.
Question 9
1 / -0

The term Imprest system is related to.........

A
Petty cash

B
Inventory valuation

C
Classification of assets

D
None

Solution

The term Imprest system is related to Petty Cash.
Question 10
1 / -0

Cash discount allowed by the seller is accounted for as _____ by the buyer.

A
Purchase A/c Dr.

B
Cash book Dr.

C
Discount received A/c Cr.

D
Drawing A/c Cr.

Solution

Discount are of two types, trade discount and cash discount. Cash discount is associated with the payment of cash. It is an indirect income to the buyer, hence credited in discount a/c.

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Re-Attempt Weekly Quiz Competition

Recording and Posting of Cash Transactions Test 7

Result

Recording and Posting of Cash Transactions Test 7

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Rank

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SHARING IS CARING

Question 1

Purchase Day Book

Cash Book

Plant A/c

Any of the Above

Solution

Question 2

Two months rent of Rs. 5000 paid in advance

One year insurance premium Rs.9000 paid in advance

Goods purchased on 3 months credit

Goods worth Rs. 5900 sold cash

Solution

Question 3

Purchase journal

Purchase A/c

Cash payment Journal

Petty cash book

Question 4

To pay small day to day expenses like postage, telegraph

To pay statutory liabilities like income tax, sales tax

To discharge bank obligations

To pay for purchase of trading goods

Solution

Question 5

Rs.80,500

Rs. 85500

Rs.85000

Rs.85300

Question 6

Sales Day Book

Cash Book

Directly n Sales A/c

All the above

Solution

Question 7

Purchase journal

Purchase A/c

Cash payment Journal

Petty Cash book

Question 8

affects both the sides of the same A/c book

affects both the sides of the trial balance

affects one side of a real A/c and another side of a personal A/c

affects both the sides of the same types of A/c

Solution

Question 9

Petty cash

Inventory valuation

Classification of assets

None

Solution

Question 10

Purchase A/c Dr.

Cash book Dr.

Discount received A/c Cr.

Drawing A/c Cr.

Solution

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