Cash Book Objectives

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Cash Book 01. Bank Column on receipt side of cash book shows total of Rs.100, 000 while Bank column on payment side shows total of Rs.80, 000 which means? a) Bank Overdraft of Rs.20, 000 b) Bank Balance of Rs.100, 000 b) Bank Balance of rs.20, 000 d) Bank Overdraft of Rs.80, 000 02. Bank Column on receipt side of cash Book shows total of Rs.90, 000, which mean? a) Bank Overdraft of Rs.60, 000 b) Bank balance of Rs.60, 000 c) Bank Balance of Rs.90, 000 d) Bank Overdraft of Rs.150, 000 03. Which of the following discount is given on prompt payment? a) Trade discount b) Quantity discount c) Cash discount d) None of above 04. All cash receipts and payment are recorded in? a) General journal b) Sales journal c) Cash book d) Pass book 05. Which of the following columns of cash book are balanced at month end? a) Cash column and Sales discount column b) Bank Column and Purchase discount column c) Cash Column and Purchase discount column d) Cash column and Bank column 06. Cash discount is received on? a) Cash Purchase b) Credit Sales c) Credit Purchase d) All of above 07. Which of the following is correct? a) Purchase discount is an expect account b) All receipt and payment are recorded in Sales journal c) Cash discount is given on Cash sales d) All bank transactions are entered in bank column of cash book 08. Bank Column on receipt side of Cash Book shows total of Rs.350, 000 while Bank column on payment side shows total of Rs.400, 000, which means? a) Bank Overdraft of Rs.50, 000 b) Bank balance of Rs.50, 000 c) Bank Balance of Rs.350, 000 d) Bank Overdraft of Rs.400, 000 09. Which of the following columns of cash book are totaled and not balanced at month end? a) Cash column and Bank column b) Purchase discount column & Sales discount column c) Cash column and purchase discount column d) Cash column and sales discount column 10. Bank Column on receipt side of Cash Book shows total of RS.650, 000 while bank Column on Payment side shows total of Rs.780, 000, which means? a) Bank Overdraft of Rs.90, 000 b) Bank balance of Rs.160, 000 c) Bank Balance of Rs.100, 000 d) Bank Overdraft of Rs.130, 000

2 11.

The balance of bank column of Cash Book? a) Always show debit balance b) Always show credit c) May show debit or credit balance d) None of above 12. Which of the following is contra entry? a) Owner invested cash into business b) Owner withdrew cash from bank for personal use c) Cash deposited into bank d) Cheque received and deposited into bank on same day 13. Discount on list price or catalogue price is known as? a) Sales discount b) Early settlement discount c) Purchase discount d) Trade discount 14. Cash column on receipt side of cash book shows total of Rs.250, 000 while Cash Column on payment side shows total Rs.100, 000, which means? a) Cash on hand Rs.250, 000 b) Cash on hand Rs.100, 000 c) Cash on hand Rs.150, 000 d) Payment side is more than receipt side by Rs.150, 000 15. Cash Column on receipt side of Cash Book shows total of Rs.500, 000 while Cash Column on payment side shows total of Rs.450, 000, which means? a) Cash on hand Rs.50, 000 b) Cash on hand Rs.450, 000 c) Cash on hand Rs.500, 000 d) Payment side is more than receipt side by Rs.50, 000 16. Two column cash book shows records of? a) Both cash & Credit transactions b) All cash transactions c) Cash & Bank transactions d) Cash, Bank & Discount transactions 17. The Cash Book is? a) Ledger b) Subsidiary Journal c) Statement d) Financial Statement 18. Cash Column on receipt side of Cash Book Shows total of Rs.90, 000 while Cash on payment side shows total of Rs.960, 000, which means? a) Cash on hand Rs.60, 000 b) We have paid Rs.60, 000 more than what we received c) We have made an error d) None of above 19. Cash Column on receipt side of Cash book shows total of rs.700, 000 while Cash Column on payment side shows total of Rs.80, 000, which mean? a) Cash on hand Rs.100, 000 b) We have paid Rs.100, 000 more than what we received c) We have made an error d) None of above 20. Cash Book maintains records about? a) All receipt only b) All payments only c) All types of sales and purchases d) All receipt and payments 21. Contra entry is appeared on both sides of? a) Petty Cash Book b) General Journal c) Sales Journal d) Cash Book

3 22.

Which of the following is a contra entry? a) Cash is deposited into bank b) Cash is withdrew from bank for office use c) Cheque deposited into bank on any future data d) All of the above 23. Three column cash book shows records of? a) All cash & credit transactions b) All cash transactions c) Cash & Bank transactions d) Cash. Bank & Discount transactions 24. Discount received on early or prompt payment is called? a) Sales discount b) Trade discount c) Purchase discount d) Quantity discount 25. Debit balance on bank column of cash book shows? a) Bank Overdraft b) Cash on hand c) Cash at bank d) Total deposits into bank 26. When an entry is entered on both receipt and payment side of a cash book, then it is called? a) Compound Entry b) Combined Entry c) Contra Entry d) Closing Entry 27. Single column Cash book shows record of? a) All credit transactions b) All cash transactions c) Cash & Bank transactions d) Cash, Bank & Discount transactions 28. On collection from customers, which of the following is issued to customers? a) Invoices b) Debit memo c) Receipt vouchers d) Payment vouchers 29. Which of the following best describes a contra entry? a) Entry which is entered in Sales Journal b) Entry which is entered in receipt side of Cash Book c) Entry which is entered in payment side of cash Book d) Entry which is entered in both receipt and payment side of Cash Book 30. Bank column of cash book shows a credit balance of Rs.25, 000 how is the balance Sheet? a) As a current asset b) As a current liability c) As a fixed asset d) As a capital 31. Bank column of Cash book shows a debit balance of Rs.80, 000 how is this shown in the balance sheet? a) As a current asset b) As a current liability c) As a fixed asset d) As a capital 32. Purchase discount is shown on? a) Receipt side of Cash Book b) Payment side of Cash Book c) Petty Cash Book d) Trial Balance

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On payment to suppliers, a receipt is obtained from him which is called? a) Debit memo b) Invoice c) Payment voucher d) Receipt voucher 34. A cheque received from a customer and not deposited into bank on same day will be Entered on? a) Cash column of payment side b) Bank column of receipt side c) Bank column of payment side d) Bank column of receipt side 35. Which of the following is a contra entry? a) Drawing of owner from bank b) Cheque received and deposited into bank on same day c) Salaries paid by cheque d) None of above 36. Cash column can have? a) Credit balance only b) Debit balance only c) Both debit and credit balance d) None of above 37. Cash discount is given on? a) Cash purchase b) Credit Sales c) Credit purchase d) All of above 38. Cash sales is recorded in? a) Pass Book b) Petty Cash Book c) Sales Journal d) Cash Book 39. A credit balance of Rs.5, 000 on bank column of cash Book indicates? a) Bank balance of Rs.5, 000 b) Bank Overdraft of Rs.5, 000 c) Total withdrew from bank during the month d) Total deposits into bank during the month 40. Discount received on early payment is called? a) Purchase discount b) Quantity discount c) Sales discount d) Trade discount 41. In preparing Cash Book ''C'' is written in P/R column for? a) Compound Entry b) Contra Entry c) Combined Entry d) Closing Entry 42. Sales discount is allowed only if? a) Payment is made within discount period b) Merchandise are sold on cash c) Merchandise are sold either on cash or credit d) Merchandise are sold in bulk quantities 43. Sales discount column is shown on? a) Receipt side of Cash Book b) Payment side of Cash Book c) Petty Cash Book d) Trail Balance

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Cash discount is received on? a) Cash Sales b) Credit Purchase c) Credit Sales d) Cash Purchase In general ledger total of discount received is posted to? a) Debit side of Purchase discount account b) Debit side of Sales discount account c) Credit side of purchase discount account d) Credit side of sales discount A credit balance of Rs.10, 000 on the bank Column of Cash Book? a) We have Rs.10, 000 cash in bank b) We have withdrew RS.10, 000 more than our account c) Owner withdrew cash RS.10, 000 from bank for personal use d) Owner invested Rs.10, 000 into bank A credit balance of Rs.5, 000 on the cash Column of Cash Book would mean? a) We have Rs.5, 000 cash in hand b) We have spent Rs.5, 000 more than we received c) Payment are Rs.5, 000 more than receipt d) We have made an error Cash column of cash book shows Rs.10, 000 Dr balance, this means? a) We have made an error b) We have Rs.10, 000 cash in bank c) We have Rs.10, 000 cash in bank d) Someone has stolen RS.10, 000 Bank overdraft means? a) The business is wasting its money b) Having more receipt than payment c) The business having bought too many goods d) The business has paid more out of its bank account than it put in it In the general ledger total of discount allowed is posted to? a) Debit side of Purchase discount account b) Debit side of Sales discount account c) Credit side of Purchase discount account d) Credit side of Sales discount account Which of the following can be entered on bank column of receipt side of cash book? a) Cheque issued to suppliers b) Owner withdrew cash from bank for personal use c) Cash withdrew from bank for office use d) Cheque received from customers and deposited into bank

ANSWERS (Cash Book) 1) 10) 19) 28) 37) 46)

c d c c b b

2) 11 20 29) 38) 47)

b c d d d d

3) 12) 21) 30) 39) 48)

c c d b b c

4) 13) 22) 31) 40) 49)

c d d a a d

5) 14) 23) 32) 41) 50)

d c d b b b

6) 15) 24) 33) 42) 51)

c a c c a d

7) 16) 25) 34) 43)

b c c d a

8) 17) 26) 35) 44)

a b c d b

9) 18) 27) 36) 45)

b c b b c