Tag: three columnar cash book

Questions Related to three columnar cash book

On 30-9-2015 overdraft as per pass book of S. Ltd was Rs. 32,400.The bank had directly collected dividend of other companies Rs. 1,750 and interest Rs. 1,200. As standing instruction bank had paid bills of Rs. 2,454. Cheque deposited for Rs. 8,929.60 was not credited in pass book. Balance as per cash book should be _____________.

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

  1. overdraft of Rs.23,966.40

  2. overdraft of Rs.46,733.60

  3. overdraft of Rs.40,833.60

  4. overdraft of Rs.18,066.40

Show answer
Correct Option: A

Over draft as per cash book of B & Co. was Rs 30,000. A comparison of passbook and cashbook revealed the following:

  • The credit side of bank column of cash book was undercast by Rs 100
  • Interest on bank loan Rs 2,000 and bank charges of Rs 575 were not recorded in cash book.
Overdraft balance as per pass book should be ____________.

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

  1. Rs 32,675

  2. Rs 27,325

  3. Rs 28,675

  4. Rs 28,475

Show answer
Correct Option: A

Which of the following would record a customer's cheque returned dishonoured?

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

  1. Purchases Return Book

  2. Sales Return Book

  3. Journal

  4. Cash Book

Show answer
Correct Option: D

Rent due for the month of March will appear ______ of the cash book.

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

  1. On the receipt side

  2. On the payment side

  3. As a contra entry

  4. Nowhere

Show answer
Correct Option: D

Interest received of $Rs.100$ was recorded as interest paid. What will be the effect on cash balance?

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

  1. Cash will reduce by $Rs.100$.

  2. Cash will reduce by $Rs.400$.

  3. Cash will reduce by $Rs.200$.

  4. No effect on cash balance.

Show answer
Correct Option: C

Which of the following transactions is not posted in the ledger?

elements of accounts ledger and posting three column cash book three columnar cash book triple column cash book

  1. Withdrew from bank for business purpose

  2. Withdrew from bank for personal use

  3. Withdrew cash for personal use.

  4. Cash paid to creditor.

Show answer
Correct Option: A

Ledger book is popularly known as ______________.

elements of accounts ledger and posting three column cash book three columnar cash book triple column cash book

  1. Secondary book of accounts

  2. Principal book of accounts

  3. Subsidiary book of accounts

  4. None of these

Show answer
Correct Option: B

Narration is not necessary in ledger.

elements of accounts ledger and posting three column cash book three columnar cash book triple column cash book

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

Narration 

A short explanation of each transaction is written under each entry which is called narration. 

Narration is not required in ledger, whereas it is required in a Journal. 
It is the brief explanation that provides the details of Journal entry and helps understand the account debited or credited. Journal entries are posted to the ledger accounts. 
Thus,narration is not necessary in ledger.

Balance of petty cash book is posted to ledger ______________.

elements of accounts ledger and posting three column cash book three columnar cash book triple column cash book

  1. In the cash account

  2. In the bank A/c

  3. Nowhere

  4. Either (a) or (b).

Show answer
Correct Option: C
Explanation:

A petty cash book is a ledger kept with the petty cash fund to record amounts that are added to or subtracted from its balance. Petty cash should be part of an overall business accounting system that documents how your business moves funds between one account and another and how it spends its money.

In the absence of proper agreement, representative of the deceased partner is entitled to the Dead partner's share in the following items _______. 

elements of accounts ledger and posting three column cash book three columnar cash book triple column cash book

  1. profits till date, goodwill, joint life policy, interest on capital, share in revalued assets and liabilities.

  2. capital, goodwill, joint life policy, interest on capital, share in revalued assets and liabilities.

  3. capital, profits till date, goodwill, interest on capital, share in revalued assets and liabilities.

  4. capital, profits till date, goodwill, joint life policy, share in revalued assets and liabilities.

Show answer
Correct Option: D