BOOKS OF PRIME ENTRY_CASHBOOK

What is the purpose of a Cash Book?

• To record cash and bank transactions

• To record only credit transactions

• To prepare financial statements

• To record depreciation expenses

What does a Three-Column Cash Book include?

• Discount column

• Discount column

• Inventory column

• Loan column

       What is a Petty Cash Book used for?

• Small amount frequent business expenses

• Large business expenses

• Only credit transactions

• Only credit transactions

What is a Contra Entry?

• An entry recorded on both the debit and credit sides

• An entry for cash payments

• An entry for fixed asset purchases

• An entry for depreciation

      What is recorded in the Bank Column of a Cash Book?

• Cheque deposited into the bank

• Goods purchased on credit

• Cash received from customers

• Office rent paid in cash

What is a Dishonoured Cheque?

• A cheque that is returned due to insufficient funds

• A cheque that has been successfully processed

• A cheque issued by the company

• A cheque issued by the company

What is a Cash Discount?

• A reduction in price for early payment

• A discount given by suppliers

• A penalty for late payment

• A discount on bulk purchases

What is recorded on the credit (CR) side of a cash book?

• Payments

• Receipts

What is recorded on the debit (DR) side of a cash book?

• Receipts

• Payments

If a company receives RM1,000 in cash sales, where should it be recorded in the cash book?

• Debit side under 'Cash'

• Credit side under 'Bank'

• Credit side under 'Cash'

• Debit side under 'Discount Allowed'