Tag: introduction, meaning and importance of cash book

Questions Related to introduction, meaning and importance of cash book

Which of the following is/are features of cash book?

  1. It performs the functions of both journal and ledger at the same time.

  2. Cash receipts are recorded in the credit side and cash payments are recorded in the debit side.

  3. It records two aspect of transaction i.e. cash & credit.

  4. All of the above


Correct Option: A

Rent due for the month of March will appear _______________.

  1. On the payment side of the cash book

  2. On the receipt side of the cash book

  3. Nowhere in the cash book

  4. As a contra entry


Correct Option: C

Which of the following is the kind of a cash book?

  1. Single column cash book

  2. Double-column cash book

  3. Three-column cash book

  4. All of the above


Correct Option: D

Which of the following statements is/are true?
(i) Cash book records all cash receipts and cash payments.
(ii) Cash book records all sale and purchase transactions of goods both in cash and on credit.
(iii) Cash book records discount on cash payments
Select the correct answer from the options given below :-

  1. Only (i) of the above

  2. Only (ii) of the above

  3. Only (iii) of the above

  4. Both (i) and (iii) of the above


Correct Option: D

State with reasons whether the following statement is true or false:
The balance in the Cash Book shows net income.

  1. True

  2. False


Correct Option: B

State with reasons whether the following statement is true or false:
Discount account should be balanced in the Cash Book.

  1. True

  2. False


Correct Option: B

In which book does the cash sales will be recorded?

  1. Cash Book

  2. Purchase Book

  3. General Journal

  4. Sales Book


Correct Option: A
Explanation:
Cash book is a journal in which all cash receipts and payments (including bank deposits and withdrawals) are recorded first, in chronological order, for posting to general ledger. Cash book is regularly reconciled with the bank statements as an internal auditing measure. It  is used to record all the receipts and payments of cash.

At the happening of below mentioned event what will happen. A cheque is deposited with bank.

  1. Bank pass book will be credited

  2. Bank pass book will be debited

  3. Bank's column in cask book is debited

  4. Bank's column in cask book is credited


Correct Option: C