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WorksheetsChapter 4 Cash book
Total questions: 20
Worksheet time: 10mins
Cash book is a form of:
trial balance
ledger
financial statements
all of the above
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total amount withdrawn from the bank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
2. The balance of cash column of cash book never shows a:
credit balance
debit balance
none of the above
all of the above
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 raw materials on credit
payment of wages
Cheque returned dishonoured, it is recorded in
Cash column on credit side
Cash column on debit side
Bank column on credit side
Journal proper
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
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.
Tony paid a cheque for $3250 to James in full settlement of a debt for $3400.
How will James record this transaction?
Debit: Bank $3 250, Debit: Discount allowed $150; Credit: Tony $3 400
Debit: Tony $3 400; Credit: Bank $3 250, Debit: Discount allowed $150
Debit: Bank $3 250, Debit: Discount received $150; Credit: Tony $3 400
Debit: Tony $3 400; Credit: Bank $3 250, Debit: Discount received $150
What is cash discount?
an allowance given to a customer for paying in cash
an allowance given to a customer for prompt payment
deduction from the list price of goods bought by a customer
a deduction from the list price of goods for bulk buying by a customer
On 1 April Mary had a bank overdraft of $1450.
On 2 April she paid $250 cash into the bank and
paid rent, $390, by cheque.
What is Mary’s bank overdraft after the transactions on 2 April?
$810
$1 310
$1 590
$2 090
Ali receives a cheque from Hassan, a trade receivables, in payment for goods purchased by Hassan on
credit.
Where will Ali enter this payment?
cash book and sales ledger
cash book and purchases ledger
nominal ledger and sales ledger
nominal ledger and purchases ledger
The totals of the discount columns in a cash book are as follows:
debit $2000
credit $1250
Which entries are made in the ledger accounts?
Debit: discounts allowed $1 250; Credit: discounts received $2 000
Debit: discounts allowed $2 000; Credit: discounts received $1 250
Debit: discounts received $1 250; Credit: discounts allowed $2 000
Debit: discounts received$2 000; Credit: discounts allowed $1 250
