Tag: introduction, meaning and importance of cash book

Questions Related to introduction, meaning and importance of cash book

In the particulars account the name of the account to be credited is entered at ___________ place with a prefix 'To'.

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. in confirmation of the name of the account to be debited

  2. next line to the account name that is to debited

  3. anywhere in the journal

  4. none of the above

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Correct Option: A

Which of the following will disturb the balancing of the trial balance?

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. Error in adding up a book of prime entry

  2. Entering an acquisition of an asset, on credit terms, in the Purchases Day Book

  3. Posting to an asset account instead of an expenditure account

  4. Entering a wrong amount in a book of prime entry

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Correct Option: A

The data and month of the first entry are written ___________.

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. on the next line of the data column

  2. on the same line of the data column

  3. on a line above the data column

  4. at the left of the data column

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Correct Option: A

The purchase of supplies for cash will result in an _______________.

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. Increase in cash and a decrease in capital

  2. Increase in cash and an increase in supplies

  3. Increase in supplies and a decrease in cash

  4. Increase in equipment and an increase in capital

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Correct Option: C

Location of the debit column is ____________.

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. in contravention with particulars

  2. in front of the particulars column where the amount is debited

  3. in front of the particulars column where the amount is credited

  4. not present anywhere in the journal

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Correct Option: B

Book keeping is meant to show all the transactions.

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. Of the whole year

  2. Of the accounting period

  3. Of half year

  4. All of the above

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Correct Option: B

In the Sales Book ______ of goods recorded. 

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. Cash sale

  2. Credit sale

  3. Budgeted sales

  4. All of the above

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Correct Option: B
Explanation:

A Sales book is a record of all credit sales made by a business. It is one of the secondary book of accounts and unlike cash sales which are recorded in cash book, sales book is only to record credit sales.

The amount entered in the sales book is on behalf of invoices supplied to purchasers.

The total of the purchases day book is posted periodically to the debit of ________________.

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. Purchases account

  2. Cash book

  3. Journal proper

  4. None of these

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Correct Option: A

Purchases day book records ________________.

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. All cash purchases

  2. All credit purchases

  3. Credit purchases of trading goods

  4. All of the above

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Correct Option: C

Cash sales are recorded in ___________.

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. Journal proper

  2. Sales Book

  3. Cash Book

  4. All of the above

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Correct Option: C