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S1 Chapter 7 - Cash Book

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Cash book records _____ receipts and payments.

a)
cash
b)
credit
c)
cash and credit both
d)
either cash or credit
e)
neither cash nor credit
2.

Cash book is a form of:

a)

Trial Balance

b)

Ledger

c)

Journal

d)

All of the above

3.

What will be journal entry when cash is withdrawn from bank for personal use?

a)

Dr Drawings, Cr Bank

b)

Dr Cash, Cr Bank

c)

Dr Bank, Cr Drawings

d)

Dr Bank, Cr Capital

4.

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

a)

Contra entry

b)

Simple entry

c)

Double entry

d)

Single entry

5.

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

a)

withdrawal of cash from bank

b)

payment to creditors

c)

withdrawal of cash from bank for personal use

d)

all of the above

6.

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

a)

total amount withdrawn from the bank

b)

total amount deposited in the bank

c)

cash at bank

d)

bank overdraft

7.

The balance of cash column of cash book never shows a:

a)

credit balance

b)

debit balance

c)

none of the above

d)

all of the above

8.

The “C” in the folio columns of Cash Book means __________.

a)

creditor’s account has been settled

b)

cash being withdrawn for own use

c)

customer’s account is in “Contra”

d)

cash being deposited into bank

9.

A person bought a television set a list price RM2,000 on credit. Trade discount was 10% and cash discount 5%. He settled his debt within the discount period. Which of the following entries in his book is correct?

a)

Credit: Cash RM 1,800

b)

Credit: Cash RM 1,710

c)

Debit: Accounts Receivable RM 1,800

d)

Debit: Accounts Receivable RM 1,710

10.

Discount gained from supplier for the prompt payments is known as _________.

a)

Discount Received

b)

Discount Allowed

c)

Trade Discount

d)

Cash Discount

11.

A debit balance of RM100 in a Cash Account shows that

a)

There was RM100 cash in hand

b)

Cash has been overspent by RM100

c)

RM100 was the total of cash paid out

d)

The total of cash received was less than RM100

12.

A credit balance of RM200 on the cash columns of the Cash Book would mean

a)

we have spent RM200 more than we have received

b)

we have RM200 cash in hand

c)

the bookkeeper has made a mistake

d)

someone has stolen RM200 cash

13.

A cash discount is best described as a reduction in the sum to be paid

a)

if payment is made within a previously agreed period

b)

if payment is made by cash, not cheque

c)

if payment is made either by cash or cheque

d)

if purchases are made for cash, not on credit

14.

The total of the ‘Discount Allowed’ column in the Cash Book is posted to

a)

the debit of the Discount Allowed Account

b)

the debit of the Discount Received Account

c)

the credit of the Discount Allowed Account

d)

the credit of the Discount Received Account

15.

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

a)

totalled but not adjusted

b)

totalled and also adjusted

c)

totalled but not balanced

d)

balanced but not totalled