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Accountancy

Description: this paper covers cash book & other subsidiary books,as per their relevance for cbse exams.
Number of Questions: 29
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Tags: Accountancy
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What do you mean by “balancing of accounts”?

  1. Total of credit side

  2. Total of debit side

  3. Total of both,debit & credit side

  4. Difference in total of debit & credit side


Correct Option: D

Double column cash book records

  1. only cash transactions

  2. only credit transactions

  3. cash and bank transactions

  4. all transactions


Correct Option: C

Assets sold on credit are entered in

  1. sales journal

  2. purchase journal

  3. journal proper

  4. All the above


Correct Option: C

Cash Book records transactions of which nature?

  1. Cash nature

  2. Credit nature

  3. Both cash and credit

  4. None of these


Correct Option: A

In a purchase book, goods purchased on _______ are recorded.

  1. cash

  2. credit

  3. Both cash and credit

  4. None of these


Correct Option: B

Goods previously purchased from Ram are returned to him because of some defect in them. Now this will be recorded in

  1. purchase journal

  2. purchase return journal

  3. None of these

  4. journal proper


Correct Option: B

A book maintained to record transactions, which do not find place in special journals, is known as

  1. journal entry

  2. journal proper

  3. journal residual

  4. Both 2 and 3


Correct Option: D

In which account,periodic total of sales return journal is posted?

  1. sales account

  2. purchase return account

  3. sales return account

  4. goods account


Correct Option: C

The amount which is given to the petty cashier at the beginning of a certain period, is known as

  1. initial amount

  2. beginning amount

  3. imprest amount

  4. None of these


Correct Option: C

What do you mean by “Overdraft” in case of bank account?

  1. when the amount of deposits exceeds amount of withdrawal

  2. when the amount of deposits equals amount of withdrawal

  3. when cash withdrawn exceeds the amount of deposit

  4. none of them


Correct Option: C

_____ is also known as “book of original entry”.

  1. Journal proper

  2. Sales book

  3. Cash book

  4. Purchase book


Correct Option: C

What do you mean by Contra Entry?

  1. When a transaction is recorded on the debit side of the cash book.

  2. When a transaction is recorded on the credit side of the cash book.

  3. When a transaction is recorded on both, debit as well as credit side of the cash book

  4. All of them are correct.


Correct Option: C

When a cash book is maintained, transactions of cash are not recorded in the

  1. purchase book

  2. sales book

  3. journal

  4. All the above


Correct Option: D

Total of debit side of cash book is ________ the credit side.

  1. equal to

  2. more than

  3. less than

  4. any one is possible


Correct Option: B

The left side of the cash book shows the ______ of the cash, whereas the right side of the cash book shows all the _______ made in cash.

  1. receipts, payments

  2. payments, receipts

  3. receipts, receipts

  4. None of these


Correct Option: D

Credit purchase of a machine is entered in the

  1. purchase book

  2. cash book

  3. journal proper

  4. Both 1 and 3


Correct Option: C

Salary paid is entered on the __________ side of cash book.

  1. credit

  2. debit

  3. any of them

  4. None of these


Correct Option: A

Cash sales is recorded in

  1. sales journal

  2. cash book

  3. journal proper

  4. Both 1 and 2


Correct Option: B

When money is deposited in bank, _______ the cash column side of the cash book is affected.

  1. debit

  2. credit

  3. both the sides

  4. no effect


Correct Option: B

When establishment expenses are paid from bank, then _________ side of the cash column of cash book is affected.

  1. debit

  2. credit

  3. both of them

  4. no effect


Correct Option: D

Total of these transactions are posted in purchase account :

  1. purchases return

  2. cash & credit purchases

  3. purchase of building

  4. purchase of furniture


Correct Option: B

When cash is withdrawn for personal use, then the effect will be shown on the _________ side of cash book.

  1. debit

  2. credit

  3. Both 1 and 2

  4. None of these


Correct Option: B

Goods sold and received a cheque (deposited in the bank on the same day), will affect which side of bank column in a cash book?

  1. Debit side

  2. Credit side

  3. Both 1 and 2

  4. No effect


Correct Option: A

Received cheque from a party(not yet deposited) affects which side of bank column in a cash book.?

  1. debit side

  2. credit side

  3. both of them

  4. no effect


Correct Option: D

Credit balance shown by a bank column in cash book is known as :

  1. cash deposited in our bank

  2. overdraft

  3. cash withdrawn from bank

  4. none of them


Correct Option: B

In journal proper, only _________ discount is recorded.

  1. trade

  2. cash

  3. Both 1 and 2

  4. None of these


Correct Option: B

Cash and credit purchases are entered in

  1. purchase journal

  2. journal proper

  3. purchase account

  4. cash book


Correct Option: B

Cash deposited in the bank, will affect ______ the side of cash column and _______ side of bank column, of the cash book.

  1. debit , credit

  2. credit , debit

  3. Both 1 and 2

  4. credit , credit


Correct Option: B

Expenses like, courier charges, fax charges, bus fare etc. are generally recorded in the

  1. cash book

  2. bank column of cash book

  3. petty cash book

  4. expenses book


Correct Option: C
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