All Courses
Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity Get the App Login Join for Free
Sign in Open App
Commerce Exam  >  Commerce Questions  >  Cash in hand can be obtained by preparinga)St... Start Learning for Free
Cash in hand can be obtained by preparing
  • a)
    Statement of affairs
  • b)
    Cash book
  • c)
    Debtors
  • d)
    Creditors
Correct answer is option 'B'. Can you explain this answer?
Clear all your Commerce doubts with EduRev
Most Upvoted Answer
Cash in hand can be obtained by preparinga)Statement of affairsb)Cash ...
Explanation:

Cash in hand can be obtained by preparing the Cash Book. A Cash Book is a book of original entry in which transactions related to cash receipts and payments are recorded. It is a book of prime entry because all transactions related to cash are first recorded in it before they are posted to the ledger accounts.

The Cash Book serves the following purposes:

1. It records all cash receipts and payments.

2. It shows the cash balance at any point in time.

3. It helps to detect errors and frauds related to cash.

4. It serves as a basis for preparing the Trial Balance and the Statement of Cash Flows.

Therefore, by preparing a Cash Book, one can ascertain the amount of cash in hand at any point in time. It is an important document for any business as it helps in managing the cash flow efficiently.

Conclusion:

Hence, the correct answer is option 'B', i.e., Cash in hand can be obtained by preparing the Cash Book.
Free Test
FREE
Start Free Test
Start Free Test
Community Answer
Cash in hand can be obtained by preparinga)Statement of affairsb)Cash ...
Cash book is a book of original entry in which transactions relating only to cash receipts and payments are recorded in detail. When cash is received it is entered on the debit or left hand side. Similarly, when cash is paid out the same is recorded on the credit or right hand side of the cash book.
Explore Courses for Commerce exam

Similar Commerce Doubts

Read the following hypothetical case study and answer the question that follows:Mr. Nahin Ahmed keeps his book on Single Entry. From the following information given by him, ascertain his profit or loss for the year ending 31st March 2019 and prepare the final statement affairs.His position on 1st April 2018 were as follows: Plant and Machinery ₹30,000; Stock ₹5,000; Cash in hand ₹100; Debtors ₹17,000; Loan from Mr. Bishal Podiyal ₹1,000 at 4% p.a. interest; Bank Overdraft ₹1,100 and Creditors ₹12,120.On 31st March 2019, he owed his creditors ₹9,170 and had paid Mr. Bishal ₹500 in lieu of his loan on 1st October 2018 and paid no interest. He had bought additional Plant and Machinery @ ₹13,000. Debtors were ₹23,000 out of which ₹900 would not be able to connect. The Cash and Bank Balance was ₹4,100. Stock at the end was valued at ₹4,500.Mr. Ahmed withdrew ₹8,300 for domestic purposes. He introduced a further capital of ₹10,000 during this year.Q. How will the amount of capital at the beginning be ascertained by Mr. Nahin Ahmed?

Read the following hypothetical case study and answer the question that follows:Mr. Nahin Ahmed keeps his book on Single Entry. From the following information given by him, ascertain his profit or loss for the year ending 31st March 2019 and prepare the final statement affairs.His position on 1st April 2018 were as follows: Plant and Machinery ₹30,000; Stock ₹5,000; Cash in hand ₹100; Debtors ₹17,000; Loan from Mr. Bishal Podiyal ₹1,000 at 4% p.a. interest; Bank Overdraft ₹1,100 and Creditors ₹12,120.On 31st March 2019, he owed his creditors ₹9,170 and had paid Mr. Bishal ₹500 in lieu of his loan on 1st October 2018 and paid no interest. He had bought additional Plant and Machinery @ ₹13,000. Debtors were ₹23,000 out of which ₹900 would not be able to connect. The Cash and Bank Balance was ₹4,100. Stock at the end was valued at ₹4,500.Mr. Ahmed withdrew ₹8,300 for domestic purposes. He introduced a further capital of ₹10,000 during this year.Q. The total amount of Plant and Machinery to be put in the Final Statement of Affairs is _________.

Top Courses for CommerceView all

Top Courses for Commerce

Cash in hand can be obtained by preparinga)Statement of affairsb)Cash bookc)Debtorsd)CreditorsCorrect answer is option 'B'. Can you explain this answer?
Question Description
Cash in hand can be obtained by preparinga)Statement of affairsb)Cash bookc)Debtorsd)CreditorsCorrect answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Cash in hand can be obtained by preparinga)Statement of affairsb)Cash bookc)Debtorsd)CreditorsCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Cash in hand can be obtained by preparinga)Statement of affairsb)Cash bookc)Debtorsd)CreditorsCorrect answer is option 'B'. Can you explain this answer?.
Solutions for Cash in hand can be obtained by preparinga)Statement of affairsb)Cash bookc)Debtorsd)CreditorsCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Cash in hand can be obtained by preparinga)Statement of affairsb)Cash bookc)Debtorsd)CreditorsCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Cash in hand can be obtained by preparinga)Statement of affairsb)Cash bookc)Debtorsd)CreditorsCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for Cash in hand can be obtained by preparinga)Statement of affairsb)Cash bookc)Debtorsd)CreditorsCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of Cash in hand can be obtained by preparinga)Statement of affairsb)Cash bookc)Debtorsd)CreditorsCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Cash in hand can be obtained by preparinga)Statement of affairsb)Cash bookc)Debtorsd)CreditorsCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses
SaveJoin the Discussion on the App for FREE
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Get App
© EduRev
Education Revolution
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup