Chapter 4 Cash book

Cash book records all

• Cash and credit transactions

• Cash receipts and payments

• Cash receipts only

• Cash payments only

In three column cash book, when does contra entry occurs?

• withdrawal of cash from bank

• payment to creditors

• withdrawal of cash from bank for personal use

• all of the above

Where two aspects of a transaction are posted in the cash book, such an entry is called:

• double entry

• debit entry

• credit entry

• contra entry

While balancing three column cash book, the discount column are:

• totalled but not adjusted

• totalled and also adjusted

• totalled but not balanced

• balanced but not totalled

The balance on the credit side of the bank column in cash book indicates

• total amount withdrawn from the bank

• total amount deposited in the bank

• cash at bank

• bank overdraft

Good sold for cash should be recorded in the

• Cash Book

• Sales Journal

• Sales Day Book

• Petty Cash Book

Which of the following is recorded on debit side of cash book?

• cash sales

• drawings

• credit sales

• cash purchases

Which of the following transactions are recorded in cash book?

• cash transactions only

• credit transactions only

• cash and credit transactions only

• all of the above

Which of the following is recorded on the credit side of the cash book?

• cash sales

• credit purchases

• dividend received

• salary paid

Which of the following will not be recorded in cash book?

• cash sales

• purchase of furniture

• purchases of goods credit

• payment of wages