Tag: petty cash book

Questions Related to petty cash book

The two types of cash vouchers include debit vouchers and ____________ vouchers.

business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

  1. Credit

  2. Memo

  3. Receipt

  4. Payment

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Correct Option: A
Explanation:

Cash vouchers are of two types viz. debit voucher and credit voucher. A debit voucher is prepared when cash payments are received whereas a credit voucher is prepared when cash payments are made. They are the documentary evidence for payment of cash or for receiving cash.

State whether true or false.
Internal vouchers are prepared by third parties related to the firm.

business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

  1. True

  2. False

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Correct Option: B
Explanation:

False. An internal voucher is prepared by the organisation itself. They can be prepared for the organisation itself or in cases where no documentary evidence is given by the other party. Example:- Counter foils of pay in slip. An external voucher is a voucher that is prepared by the third parties. Example:- A voucher sent by a shopkeeper to the buyer for purchase of goods is an external voucher. 

External vouchers are prepared by the ___________.

business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

  1. Accountant

  2. Third parties

  3. Relatives

  4. Owner

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Correct Option: B
Explanation:

An external voucher is a voucher that is prepared by the third parties. They are like bills or just like any other voucher. Example:- A voucher sent by a shopkeeper to the buyer for purchase of goods is an external voucher. 

Which among the following is an example of a voucher? 

business organisation origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents petty cash book

  1. A bill

  2. An Invoice

  3. A Receipt

  4. All of the above

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Correct Option: D
Explanation:

Any documentary evidence supporting the entries recorded in the books of accounts, establishing the arithmetic accuracy of the transaction, may also be referred to as a voucher for example, a bill, invoice, receipt, salary and wages sheet.

In analytical petty cash book, for what purpose separate column is provided?

book keeping and accountancy subsidiary books - 2 petty cash book meaning, importance and components of voucher bank book and petty cash book

  1. To record particular item of expenditure.

  2. To record particular item of receipts.

  3. Both (a) and (b)

  4. None of the above.

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Correct Option: A

The balance in petty cah book represents ____________ .

book keeping and accountancy subsidiary books - 2 petty cash book meaning, importance and components of voucher bank book and petty cash book

  1. expenses

  2. net income

  3. cash-in-hand with petty cashier

  4. none of the above

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Correct Option: C

Journal entry on submission of accounts by the petty cashier is :-
          Petty Cash A/c               Dr.
                To Expenses A/c 

book keeping and accountancy subsidiary books - 2 petty cash book meaning, importance and components of voucher bank book and petty cash book

  1. True

  2. False

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Correct Option: B

Jornal entry for recording wages expense in petty cash book is __________.
      Wages A/c        Dr.
              To Petty Cash A/c.

book keeping and accountancy subsidiary books - 2 petty cash book meaning, importance and components of voucher bank book and petty cash book

  1. True

  2. False

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Correct Option: A

Petty cashier records petty cash received on debit side.

book keeping and accountancy subsidiary books - 2 petty cash book meaning, importance and components of voucher bank book and petty cash book

  1. True

  2. False

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Correct Option: A
Explanation:

Cash received by the petty cashier is recorded on debit side and all payments for petty expenses are recorded on credit side in one column.

Posting in the ledger from Analytical Petty Cash Book is made at the end of the period.

book keeping and accountancy subsidiary books - 2 petty cash book meaning, importance and components of voucher bank book and petty cash book

  1. True

  2. False

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Correct Option: A