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Payment done by the account holder through issuing a cheque is entered in
- a)The pass-book at the time of issuing the cheque
- b)The cash-book at the time of presenting the cheque to the bank for payment
- c)The pass-book at the time of presenting the cheque to the bank for payment
- d)The cash-book when informed by the third party
Correct answer is option 'C'. Can you explain this answer?
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Verified Answer
Payment done by the account holder through issuing a cheque is entered...
When cheques are issued by the firm to suppliers or creditors of the firm, these are immediately entered on the credit side of the cash book. However, the receiving party may not present the cheque to the bank for payment immediately. The bank will debit the firm’s account only when these cheques are actually paid by the bank. Hence, there is a time lag between the issue of a cheque and its presentation to the bank which may cause the difference between the two balances.
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Payment done by the account holder through issuing a cheque is entered...
Explanation:
When an account holder issues a cheque, it is recorded in the pass-book at the time of presenting the cheque to the bank for payment. This is because the pass-book is a record of all transactions made by the account holder, and the cheque issued is considered as a debit transaction.
The process of cheque clearance takes some time, and the account holder will not know whether the cheque has been cleared or not until it is presented to the bank for payment. Hence, the entry for the payment made by cheque is made in the pass-book only when the cheque is presented to the bank for payment.
Option 'A' is incorrect because the pass-book entry is made only at the time of presenting the cheque to the bank for payment, not at the time of issuing the cheque.
Option 'B' is incorrect because the cash-book is a record of all cash transactions made by the business, and cheque transactions are not recorded in the cash-book.
Option 'D' is incorrect because the entry in the cash-book is made by the business itself, not by a third party.
Therefore, the correct answer is option 'C'.
When an account holder issues a cheque, it is recorded in the pass-book at the time of presenting the cheque to the bank for payment. This is because the pass-book is a record of all transactions made by the account holder, and the cheque issued is considered as a debit transaction.
The process of cheque clearance takes some time, and the account holder will not know whether the cheque has been cleared or not until it is presented to the bank for payment. Hence, the entry for the payment made by cheque is made in the pass-book only when the cheque is presented to the bank for payment.
Option 'A' is incorrect because the pass-book entry is made only at the time of presenting the cheque to the bank for payment, not at the time of issuing the cheque.
Option 'B' is incorrect because the cash-book is a record of all cash transactions made by the business, and cheque transactions are not recorded in the cash-book.
Option 'D' is incorrect because the entry in the cash-book is made by the business itself, not by a third party.
Therefore, the correct answer is option 'C'.
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Payment done by the account holder through issuing a cheque is entered ina)The pass-book at the time of issuing the chequeb)The cash-book at the time of presenting the cheque to the bank for paymentc)The pass-book at the time of presenting the cheque to the bank for paymentd)The cash-book when informed by the third partyCorrect answer is option 'C'. Can you explain this answer?
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Payment done by the account holder through issuing a cheque is entered ina)The pass-book at the time of issuing the chequeb)The cash-book at the time of presenting the cheque to the bank for paymentc)The pass-book at the time of presenting the cheque to the bank for paymentd)The cash-book when informed by the third partyCorrect answer is option 'C'. 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 Payment done by the account holder through issuing a cheque is entered ina)The pass-book at the time of issuing the chequeb)The cash-book at the time of presenting the cheque to the bank for paymentc)The pass-book at the time of presenting the cheque to the bank for paymentd)The cash-book when informed by the third partyCorrect answer is option 'C'. 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 Payment done by the account holder through issuing a cheque is entered ina)The pass-book at the time of issuing the chequeb)The cash-book at the time of presenting the cheque to the bank for paymentc)The pass-book at the time of presenting the cheque to the bank for paymentd)The cash-book when informed by the third partyCorrect answer is option 'C'. Can you explain this answer?.
Payment done by the account holder through issuing a cheque is entered ina)The pass-book at the time of issuing the chequeb)The cash-book at the time of presenting the cheque to the bank for paymentc)The pass-book at the time of presenting the cheque to the bank for paymentd)The cash-book when informed by the third partyCorrect answer is option 'C'. 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 Payment done by the account holder through issuing a cheque is entered ina)The pass-book at the time of issuing the chequeb)The cash-book at the time of presenting the cheque to the bank for paymentc)The pass-book at the time of presenting the cheque to the bank for paymentd)The cash-book when informed by the third partyCorrect answer is option 'C'. 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 Payment done by the account holder through issuing a cheque is entered ina)The pass-book at the time of issuing the chequeb)The cash-book at the time of presenting the cheque to the bank for paymentc)The pass-book at the time of presenting the cheque to the bank for paymentd)The cash-book when informed by the third partyCorrect answer is option 'C'. Can you explain this answer?.
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