PETTY CASH BOOK

The Balance of Petty Cash is :

• (a) An Expense

• (b) Revenue

• (c) An asset

• (d) Liability

Small payments are recorded in a book called

• (a) Cash Book

• (b) Small payments book

• (c) Purchase book

• (d) Petty cash book

If the debit and credit aspects of a transaction are recorded in the cash Book it is a:

• (a) Contra entry

• (b) Simple entry

• (c) Double entry

• (d) Single entry

In petty cash Book, the system followed:

• (a) Accrual System

• (b) Imprest System

• (c) Cash System

• (d) None of these

Imprest amount - ₹ 500. What will be the amount of re-imbursement if following expenses were incurred by the petty cashier during the month – Telephone = ₹150, Tiffin = ₹ 50, small Repairs = ₹ 30 general expenses = ₹ 100

• (a) 300

• (b) 170

• (c) 330

• (d) 270

Interest received of 100 was recorded as interest paid. What will be the effect on cash balance?

• (a) Cash will reduce by 100.

• (b) Cash will increase by 200.

• (c) Cash will reduce by 200.

• (d) No effect on cash balance.

In three column Cash Book, when does contra entry occurs?

• (a) Withdrawal of cash from bank

• (b) Payment to creditors

• (c) Withdrawal of cash from bank for personal use

• (d) all of the above

What will be journal entry when cash is withdrawn from bank for personal use?

• (a) Drawing A/c debit, Bank A/c credit

• (b) Cash A/c debit, Bank A/c credit

• (c) Bank A/c debit, Drawing A/c credit

• (d) Bank A/c debit, Capital A/c credit

Rent due for the month of March will appear ______ of the cash book.

• (a) On the receipt side

• (b) On the payment side

• (c) As a Contra Entry

• (d) Nowhere

Postage stamps purchased for ₹ 30 by business. This transaction will be recorded in:

• (a) Purchase book

• (b) Cash Book

• (c) Petty Cash Book

• (d) Journal