Accountancy Unit 7

Cash book is a

• Subsidiary book

• Principal book

• Journal proper

• Both subsidiary book and Principal book

The cash book records

• All cash receipts

• All cash payments

• Both a and b

• All credit transactions

When a firm maintains a simple cash book, it need not maintain

• Sales account in the ledger

• Purchases account in the ledger

• Capital account in the ledger

• Cash account in the ledger

A cash book with discount, cash and bank column is called

• Simple cash book

• Double column cash book

• Three column cash book

• Petty cash book

In triple column cash book, the balance of bank overdraft brought forward will appear in

• cash column debit side

• cash column credit side

• bank column debit side

• bank column credit side

Which of the following is recorded as contra entry?

• Withdrew cash from bank for personal use

• Withdrew cash from bank for office use

• Direct payment by the customer in the bank account of the business

• When bank charges interest

If the debit and credit aspects of a transaction are recorded in the cash book, it is

• Contra entry

• Compound entry

• Single entry

• Simple entry

The balance in the petty cash book is

• An Expense

• A profit

• An asset

• A liability

Petty cash may be used to pay

• The expenses relating to postage and conveyance

• Salary to the manager

• Purchases of furniture and fixtures

• Purchase of raw materials

Small payments are recorded in a book called

• Cash book

• Purchase book

• Bills payable book

• Petty cash book