CA Foundation Exam > CA Foundation Questions > Direct payment to the third party on behalf o...
Start Learning for Free
Direct payment to the third party on behalf of the account holder is entered in
- a)The cash-book when the amount is paid by the bank
- b)The cash-book when the entry is posted in the pass-book
- c)The pass-book when the entry is posted in the pass-book
- d)None of the above
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Direct payment to the third party on behalf of the account holder is e...
Explanation:
Direct payment to the third party on behalf of the account holder refers to a situation where the bank directly pays a third party on behalf of the account holder. For example, if an account holder has authorized the bank to pay their utility bills, the bank will make the payment directly to the utility company.
The entry for such a payment is recorded in the cash-book when the entry is posted in the pass-book. This means that the account holder will only come to know about the payment when they receive their pass-book and see the entry. The bank, however, will record the payment in their cash-book as soon as it is made.
The reason for this is that the cash-book is maintained by the bank and records all transactions made by the bank. The pass-book, on the other hand, is maintained by the account holder and records all transactions made on their account. Therefore, the entry for a direct payment to the third party on behalf of the account holder will only appear in the pass-book when the bank has posted the entry.
To summarize, the correct answer is option B, which states that direct payment to the third party on behalf of the account holder is entered in the cash-book when the entry is posted in the pass-book.
Direct payment to the third party on behalf of the account holder refers to a situation where the bank directly pays a third party on behalf of the account holder. For example, if an account holder has authorized the bank to pay their utility bills, the bank will make the payment directly to the utility company.
The entry for such a payment is recorded in the cash-book when the entry is posted in the pass-book. This means that the account holder will only come to know about the payment when they receive their pass-book and see the entry. The bank, however, will record the payment in their cash-book as soon as it is made.
The reason for this is that the cash-book is maintained by the bank and records all transactions made by the bank. The pass-book, on the other hand, is maintained by the account holder and records all transactions made on their account. Therefore, the entry for a direct payment to the third party on behalf of the account holder will only appear in the pass-book when the bank has posted the entry.
To summarize, the correct answer is option B, which states that direct payment to the third party on behalf of the account holder is entered in the cash-book when the entry is posted in the pass-book.
Free Test
FREE
| Start Free Test |
Community Answer
Direct payment to the third party on behalf of the account holder is e...
Bank records it but my firm cash book don't update it
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Top Courses for CA FoundationView all
Direct payment to the third party on behalf of the account holder is entered ina)The cash-book when the amount is paid by the bankb)The cash-book when the entry is posted in the pass-bookc)The pass-book when the entry is posted in the pass-bookd)None of the aboveCorrect answer is option 'B'. Can you explain this answer?
Question Description
Direct payment to the third party on behalf of the account holder is entered ina)The cash-book when the amount is paid by the bankb)The cash-book when the entry is posted in the pass-bookc)The pass-book when the entry is posted in the pass-bookd)None of the aboveCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Direct payment to the third party on behalf of the account holder is entered ina)The cash-book when the amount is paid by the bankb)The cash-book when the entry is posted in the pass-bookc)The pass-book when the entry is posted in the pass-bookd)None of the aboveCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direct payment to the third party on behalf of the account holder is entered ina)The cash-book when the amount is paid by the bankb)The cash-book when the entry is posted in the pass-bookc)The pass-book when the entry is posted in the pass-bookd)None of the aboveCorrect answer is option 'B'. Can you explain this answer?.
Direct payment to the third party on behalf of the account holder is entered ina)The cash-book when the amount is paid by the bankb)The cash-book when the entry is posted in the pass-bookc)The pass-book when the entry is posted in the pass-bookd)None of the aboveCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Direct payment to the third party on behalf of the account holder is entered ina)The cash-book when the amount is paid by the bankb)The cash-book when the entry is posted in the pass-bookc)The pass-book when the entry is posted in the pass-bookd)None of the aboveCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direct payment to the third party on behalf of the account holder is entered ina)The cash-book when the amount is paid by the bankb)The cash-book when the entry is posted in the pass-bookc)The pass-book when the entry is posted in the pass-bookd)None of the aboveCorrect answer is option 'B'. Can you explain this answer?.
Solutions for Direct payment to the third party on behalf of the account holder is entered ina)The cash-book when the amount is paid by the bankb)The cash-book when the entry is posted in the pass-bookc)The pass-book when the entry is posted in the pass-bookd)None of the aboveCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Direct payment to the third party on behalf of the account holder is entered ina)The cash-book when the amount is paid by the bankb)The cash-book when the entry is posted in the pass-bookc)The pass-book when the entry is posted in the pass-bookd)None of the aboveCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Direct payment to the third party on behalf of the account holder is entered ina)The cash-book when the amount is paid by the bankb)The cash-book when the entry is posted in the pass-bookc)The pass-book when the entry is posted in the pass-bookd)None of the aboveCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for Direct payment to the third party on behalf of the account holder is entered ina)The cash-book when the amount is paid by the bankb)The cash-book when the entry is posted in the pass-bookc)The pass-book when the entry is posted in the pass-bookd)None of the aboveCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of Direct payment to the third party on behalf of the account holder is entered ina)The cash-book when the amount is paid by the bankb)The cash-book when the entry is posted in the pass-bookc)The pass-book when the entry is posted in the pass-bookd)None of the aboveCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Direct payment to the third party on behalf of the account holder is entered ina)The cash-book when the amount is paid by the bankb)The cash-book when the entry is posted in the pass-bookc)The pass-book when the entry is posted in the pass-bookd)None of the aboveCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup