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Test: Cash Book - 1

30 Questions MCQ Test Crash Course of Accountancy - Class 11 | Test: Cash Book - 1

Description

Attempt Test: Cash Book - 1 | 30 questions in 30 minutes | Mock test for CA Foundation preparation | Free important questions MCQ to study Crash Course of Accountancy - Class 11 for CA Foundation Exam | Download free PDF with solutions

QUESTION: 1

The Balance of Petty Cash is :

A.
An expense
B.
Revenue
C.
An asset
D.
Liability

Solution:

QUESTION: 2

While balancing three column cash book, the discount columns are:

A.
Totaled but not adjusted
B.
Totaled and also adjusted
C.
Totaled but not balanced
D.
Balanced but not totaled

Solution:

QUESTION: 3

In petty cash Book, the system followed :

A.
Accrual System
B.
Imprest System
C.
Cash system
D.
None of these

Solution:

QUESTION: 4

Imprest amount – Rs. 500. What will be the amount of re-imbursement if following expenses were incurred by the petty cashier during the month-Telephone =Rs. 150, Tiffin = Rs. 50, small Repairs = Rs. 30 general expenses = Rs. 100.

A.
300
B.
170
C.
330
D.
270

Solution:

The correct option is C.

Imprest amount=500

Expenses=Telephone expenses+tiffin+small repairs +general expenses=150+50+30+100=330

Amount of reimbursement=Amount to be paid=₹300

QUESTION: 5

In three column Cash Book, when does contra entry occurs?

A.
Withdrawal of cash from bank
B.
Payment to creditors
C.
Withdrawal of cash from bank for personal use
D.
All of the above

Solution:

QUESTION: 6

The balance in the petty cash book is

A.
An expense
B.
A Profit
C.
An asset.
D.
A liability

Solution:

QUESTION: 7

Small payments are recorded in a book called:

A.
Cash Book
B.
Small payments book
C.
Purchase book
D.
Petty cash book

Solution:

QUESTION: 8

Postage stamps purchased for Rs. 30 by business. This transaction will be recorded in:

A.
Purchase book
B.
Cash Book
C.
Petty Cash Book
D.
Journal

Solution:

QUESTION: 9

What rate of commission is charged by the bank issuing the credit card :

A.
1% to 3%
B.
3% to 6%
C.
2% to 5%
D.
1% to 4%

Solution:

QUESTION: 10

Cash book is a form of :

A.
Trial Balance
B.
Ledger
C.
Journal
D.
All of the above

Solution:

QUESTION: 11

The Cash Book records

A.
All cash payments
B.
All cash payments
C.
All cash receipts and payments
D.
Cash and credit sale of goods.

Solution:

QUESTION: 12

Cash book is a type of _______ but treated as a ________ of accounts.

A.
Subsidiary book, principal book
B.
Principal book, subsidiary book
C.
Subsidiary book, Subsidiary book
D.
Principal book, Principal book

Solution:

QUESTION: 13

Salaries due for the month of March will appear

A.
On the receipt side of the cash book
B.
On the payment side of the cash book
C.
As a contra entry
D.
Nowhere in the cash book

Solution:

QUESTION: 14

The total of discounts column on the debit side of the cash book, recording cash discount deducted by customers when paying their accounts, is posted to the

A.
Credit of the discount allowed account.
B.
Debit of the discount received account.
C.
Credit of the discount received account
D.
Debit of the discount allowed account.

Solution:

QUESTION: 15

Rent due for the month of March will appear _________of the cash book.

A.
On the receipt side
B.
On the payment side
C.
As a Contra Entry
D.
Nowhere

Solution:

QUESTION: 16

Cheques received but deposited on the next day are recorded in :

A.
Cash column of the cash book
B.
Bank column of the cash book
C.
Both of these
D.
None of these

Solution:

It is treated as cash received on the date of receipt and recorded in the cash column on receipts side. When the cheque is deposited the entry for deposit will be passed on the day of depositing the cheque into bank.

QUESTION: 17

If the debit and credit aspects of a transaction are recorded in the cash Book it is a :

A.
Contra entry
B.
Simple entry
C.
Double entry
D.
Single entry

Solution:

QUESTION: 18

What will be journal entry when cash is withdrawn from bank for personal use ?

A.
Drawings A/C debit, Bank A/C credit
B.
Cash A/C debit, Bank A/C credit
C.
Bank A/C debit. Drawings A/C credit
D.
Bank A/C debit, Capital A/C credit

Solution:

QUESTION: 19

Double entry in Cash Book is completed when :

A.
Salaries are paid by cheque
B.
Withdrawal of money from bank for personal use
C.
Deposited cash into bank
D.
None of these

Solution:

QUESTION: 20

The Cash Book records

A.
All cash payments
B.
All cash payments
C.
All cash receipts and payments
D.
Cash and credit sale of goods.

Solution:

QUESTION: 21

If Ram has sold goods for cash, the entry will be recorded

A.
In the Cash Book
B.
In the Sales Book
C.
In the Journal
D.
In the Inventory Book

Solution:

QUESTION: 22

Petty cash may be used to pay

A.
The expenses relating to postage and conveyance.
B.
Salary to administrative staff
C.
For the purchase of furniture and fixtures
D.
For the purchase of raw material.

Solution:

QUESTION: 23

Where two aspects of a transaction are posted in the Cash Book, such an entry is called

A.
Double entry
B.
Debit Entry
C.
Credit Entry
D.
Contra Entry

Solution:

QUESTION: 24

While balancing three column cash book, the discount columns are:

A.
Totaled but not adjusted
B.
Totaled and also adjusted
C.
Totaled but not balanced
D.
Balanced but not totaled

Solution:

QUESTION: 25

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

A.
Simple column cash book
B.
Double-column cash book
C.
Three-column cash book
D.
All of the above

Solution:

QUESTION: 26

Imprest received of Rs. 100 was recorded as interest paid. What will be the effect on cash balance?

A.
Cash will reduce by 100.
B.
Cash will increase by 200
C.
Cash will reduce by 200.
D.
No effect on cash balance.

Solution:

Description: Correct Entry:
Cash A/c Dr. 100
To Interest A/c 100
( Being interest received)
Wrong Entry:
Interest A/c Dr. 100
To Cash A/c 100
( Being interest paid)
The effect of the above wrong entry will be that cash balance will be reduced by Rs. 200.

QUESTION: 27

Contra entries are passed only when

A.
Three-column cash book is prepared
B.
Double-column cash book is prepared
C.
Simple cash book is prepared
D.
None of the above

Solution:

Contra-entries are passed only when Double column cash book is prepared. The reason for making two entries is to comply with the principle of double entry.

QUESTION: 28

Which of the following is not a column of a three-column cash book?