Tag: commercial studies

Questions Related to commercial studies

If goods have been sold for cash, the entry will be recorded in the _______________.

commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

  1. Cash Book

  2. Sales Book

  3. Journal

  4. Stock Book.

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Correct Option: A

In a Three-Column cash book, which of the following is correct?

commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

  1. Trade discount allowed is recorded on the debit side of cash book

  2. Cash discount received is recorded on the credit side of cash book

  3. Discount columns are balanced

  4. Cash discount received is recorded on the debit side of cash book

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Correct Option: B

If the debit as well as the credit aspects of a transaction are recorded in the cash book itself, it is called ______________.

commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

  1. An opening entry

  2. A compound entry

  3. A transfer entry

  4. A contra entry.

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Correct Option: D
Explanation:

Contra Entry is an entry which is recorded to reverse or offset an entry on the other side of an account. If a debit entry is recorded in an account, contra entry will be recorded on the credit side and vice-versa.

Which is entered on the debit side of Cash Book?

commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

  1. Trade discount allowed

  2. Trade discount received

  3. Cash discount allowed

  4. Cash discount received.

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Correct Option: C

When a firm maintains a Three-Column Cash Book, it need not maintain _____________.

commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

  1. cash account in the ledger

  2. bank account in the ledger

  3. discount account in the ledger

  4. both cash account and bank account in the ledger

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Correct Option: D

In a three-column cash book only ______________________.

commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

  1. Cash column and discount columns are balanced

  2. Bank column and discount columns are balanced

  3. Cash column and bank columns are balanced

  4. Cash Column, bank column and discount columns are balanced.

Show answer
Correct Option: C
Explanation:

The cash and bank columns of triple column cash book are used as accounts and are periodically totaled and balanced just like in case of a double column cash book. The discount column is only totaled

Contra entries are passed only when _____________.

commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

  1. Double column cash book is prepared

  2. Three-column cash book is prepared

  3. Simple cash book is prepared

  4. None of these

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Correct Option: A

Which of the following is not a column of a three-column cash book?

commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

  1. Discount column

  2. Petty cash column

  3. Bank column

  4. Cash column

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Correct Option: B

Balance of cash column in cash book has ______________.

commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

  1. Dr. balance

  2. Cr. Balance

  3. Dr. or Cr. Balance

  4. None of the above

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Correct Option: A

Purchase of furniture on cash for  1,50,000 will be recorded in _____________.

commercial studies subsidiary books - 2 three column cash book three columnar cash book triple column cash book

  1. Sales Book

  2. Purchase Book

  3. General Journal

  4. Cash Book

Show answer
Correct Option: D