Tag: meaning and advantages of cash book

Questions Related to meaning and advantages of cash book

If a piece of furniture's list price is f $28,000$ and it is sold at 10%trade discount and 2%cash discount. The cash safe price of furniture would be ________________.

  1. Rs. $25,200$

  2. Rs. $24,640$

  3. Rs. $24,696$

  4. None of above


Correct Option: C
Explanation:

Trade discount on furniture = 28000*10/100

                                               = 2800
Sale price of furniture would be Rs 25200 (28000-2800)
Cash Sale price after allowing cash discount 2% is Rs 24696.
Cash discount = 25200*2/100
                         = 504
   25200 - 504 = 24696 

Which of the following is a double column cash book?

  1. One column for cash and another for bank

  2. One column for cash and another for discount

  3. One for bank and another for discount

  4. All of the above


Correct Option: D

The book in which two columns are present one for cash and other for discount is ___________.

  1. Sales book

  2. Purchase book

  3. Cash book

  4. None of the above


Correct Option: C

On 31-3-2015, bank balance as per cash book (Dr.) Rs. 10,000.A comparison of pass book and cash book revealed the following:
         - Cheques deposited for Rs.10,000 out of these cheques bank had credited                       cheques of Rs. 2,500.
         - Bank charges Rs.50 was not entered in cash books.
Balance as per pass book will be _______________.

  1. Rs. 20,050

  2. Rs. 17,550

  3. Rs. (50)

  4. Rs. 2,450


Correct Option: D

Which of the following technique is used to ascertain the correctness of debtors balance in books?

  1. Observation

  2. Enquiry

  3. Computation

  4. Confirmation


Correct Option: D
Explanation:

Confirmation is a technique to obtain audit evidences.
External confirmation - obtaining a written confirmation directly from a third party, such as bank or debtor.

Unfavourable balance as per cash book means which of the following?

  1. Cr. balance in cash book

  2. Dr. balance in cash book

  3. Bank overdraft

  4. None of the above


Correct Option: C

On purchase of goods of the list of price Rs 10000 from Ram who allowed 10% trade discount and 5% cash discount for immediate payment _____________________.

  1. Purchase Account to be debited with Rs 10000

  2. Purchase Account to be debited with Rs 8500

  3. Purchase Account to be debited with Rs 8550

  4. Discount Received A/c to be credited with Rs 500

  5. Discount Received A/c to be credited with Rs 450


Correct Option: E

A cash purchase of goods for proprietor's personal use should be credited to __________________.

  1. Purchases Account

  2. Sales Account

  3. Drawings Account

  4. Cash Account


Correct Option: D