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The Cash Book

Total questions: 15

Worksheet time: 10mins

Name
Class
Date
1.

The book of original entry in which all cash and bank transactions are recorded is called the ______

a)

cash book

b)

purchases book

c)

journal

d)

ledger

2.

Which book of original entry is used to record moneis received and paid out by the business trough bank or cash?

a)

Journal

b)

Petty cash book

c)

Return Outwards Journal

d)

Cash book

3.

True or False. There are 2 types of cash book.

a)

True

b)

False

4.

True or False. Monies received by the business are recorded on the credit side of the cash book.

a)

True

b)

False

5.

True or False. Payments made by the business are recorded on the credit side of the cash book.

a)

True

b)

False

6.

Which of the statements below define the term 'discount'?

a)

A reduction in price

b)

An increase in price

c)

Paying only half of the cost price

d)

Paying by cheque

7.

________ is an allowance given for buying goods in bulk.

a)

Cash

b)

Trade discount

c)

Cash discount

d)

Transaction

8.

________ an allowance given for quick payment of an account owing.

a)

Cash

b)

Trade discount

c)

Cash discount

d)

Transaction

9.

True or False. The discount allowed is entered on the debit side of the cash book.

a)

True

b)

False

10.

True. False. The Discount received is entered on the debit side of the cash book.

a)

True

b)

False

11.

True or False. The cash book normally carries a normal credit balance.

a)

True

b)

False

12.

True or False. When the balance b/d appears on the credit side this means there is a bank overdraft.

a)

True

b)

False

13.

The cash book works as a book of original entry and also a ledger account.

a)

TRUE

b)

FALSE

14.

The credit side of the cash book is also known as

a)

the receipt side

b)

the profit side

c)

the payment side

d)

the loss side

15.

A contra entry is an entry that involves:

a)

a cash account as well as a sales account

b)

a bank account as well as a discount account

c)

a cash account as well as a bank account

d)

a cash account as well as a discount account