Accounting Mcqs

Page No. 37

Discount received is recorded on which of the following side of a cash book?


aReceipts

✖


bPayments

✓


cIncomes

✖


dExpenditures

✖


View Answer Payments

Cash book is prepared by____________?


aBank

✖


bAccountant of business

✓


cManager of a company

✖


dBank’s cashier

✖



Cash book records:______________?


aCash payments

✖


bCash receipts

✖


cCash payments and cash receipts

✓


dNeither cash payments nor cash receipts

✖



An entry which is made on both sides of a cash book is called__________?


aCash entry

✖


bContra entry

✓


cPayment entry

✖


dCompound entry

✖


View Answer Contra entry

$5000 deposited in bank account was entered twice in the cash book. Identify the correct adjustment in cash book.


a$5000 will be credited

✓


b$5000 will be debited

✖


c$10,000 will be credited

✖


d$10,000 will be debited

✖



A company was entered in hire purchase agreement and had to pay $1000 per month. Three payments were made via bank account but no entry was found in cash book. Identify the correct adjustment in cash book


a$1000 will be added to cash book balance

✖


b$2000 will be deducted from cash book balance

✖


c$3000 will be added to cash book balance

✖


d$3000 will be subtracted from cash book balance

✓



Balance as per cash book(adjusted.=$1000, Unpresented checks=$2000, Uncredited checks=$500, Deposit in transit=$500. Compute the balance as per bank statement.


a$2000

✓


bZero

✖


c$3000

✖


d$2500

✖


View Answer $2000

Favorable balance of bank statement implies that


aCredit balance

✓


bDebit balance

✖


cBank overdraft

✖


dAdjusted balance

✖


View Answer Credit balance

_________ Checks that are presented to bank but not yet credited by the bank.


aUnpresented checks

✖


bUncredited checks

✓


cOutstanding checks

✖


dBounced checks

✖


View Answer Uncredited checks

Which of the following error results in unadjusted cash book balance?


aOutstanding checks

✓


bUnpresented checks

✖


cDeposit in transit

✖


dOmission of Bank charges

✖


View Answer Outstanding checks

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