Cash Books

An employee of a video store went to a bank and lodged the previous night's takings, held overnight in the firm's safe.

This transaction should be recorded in the store's Cash Book as:

• Column to Debit - Cash

  Column to Credit - Bank

• Column to Debit - Bank

  Column to Credit - Cash

• Column to Debit - Cash

  Column to Credit - Cash

• Column to Debit - Bank

  Column to Credit - Bank

A £200 credit balance brought down on the cash column of a firm's cash book means that . . .

• the firm has spent £200 more cash than it has received.

• the firm has £200 cash in hand.

• a mistake has been made in the recording of cash.

• someone has stolen £200 cash.

A £100 debit balance brought down in the cash column of a firm's Cash Book means that . . .

• the firm has £100 cash in hand.

• the amount of cash paid out exceeds the amount of cash received by £100.

• the total of cash paid out is £I00.

• the total of cash received is £I00.

Cash discount allowed (also known as settlement discount allowed) to a customer means that the customer is entitled to pay less than the full amount he owes . . .

• only if payment is made within an agreed time period.

• only if payment is made in cash, not by cheque.

• only if payment is made either in cash or by cheque.

• only if goods, or other items, are purchased for cash, not on credit

Cash discount (also known as settlement discount) received is . . .

• deducted from the amount payable by debtors when money is received from them.

• given by a firm to its customers when it sells goods on credit.

• deducted by a firm when it pays its creditors.

• None of the above.

The total of the discount allowed column in the cash book should be posted to . . .

• the debit side of the discount allowed account.

• the debit side of the discount received account.

• the credit side of the discount allowed account.

• the credit side of the discount received account.