Chapter 8 ACCOUNTANCY : Subsidiary Books and Cash Book — Online MCQ Test
COMMERCE · CLASS 11 INTER I YEAR · Andhra State Board
Practice Chapter 8 ACCOUNTANCY : Subsidiary Books and Cash Book with a free chapter-wise online MCQ test.
This chapter covers: This chapter details specialized prime entry books purchases sales returns books journal proper and single double three-column and petty cash books..
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Chapter 8 ACCOUNTANCY : Subsidiary Books and Cash Book — Important Questions & Answers
Which subsidiary book is used to record only credit purchases of goods?
- A. Purchase Book
- B. Sales Book
- C. Journal Proper
- D. Cash Book
Answer: A. Purchase Book
The Purchase Book is exclusively used to record credit transactions involving the purchase of goods in which the business deals.
The Purchase Book is exclusively used to record credit transactions involving the purchase of goods in which the business deals.
What is the primary purpose of maintaining a Petty Cash Book?
- A. To record large capital expenditures
- B. To record small, recurring daily expenses
- C. To track bank overdrafts
- D. To calculate net profit
Answer: B. To record small, recurring daily expenses
Petty Cash Book is used to record small, frequent payments like postage, tea, and stationery to keep the main cash book uncluttered.
Petty Cash Book is used to record small, frequent payments like postage, tea, and stationery to keep the main cash book uncluttered.
What is a 'Contra Entry' in a double-column cash book?
- A. Entry involving cash and credit sale
- B. Entry involving cash and discount
- C. Entry involving cash and bank simultaneously
- D. Entry involving purchases and sales
Answer: C. Entry involving cash and bank simultaneously
A contra entry occurs when a transaction affects both the cash account and the bank account, such as cash deposited into the bank or cash withdrawn from the bank for office use.
A contra entry occurs when a transaction affects both the cash account and the bank account, such as cash deposited into the bank or cash withdrawn from the bank for office use.
If an asset is purchased on credit, where should it be recorded?
- A. Purchase Book
- B. Journal Proper
- C. Cash Book
- D. Sales Book
Answer: B. Journal Proper
Subsidiary books like the Purchase Book record only the purchase of goods for resale; credit purchases of fixed assets are recorded in the Journal Proper.
Subsidiary books like the Purchase Book record only the purchase of goods for resale; credit purchases of fixed assets are recorded in the Journal Proper.
Why is the Petty Cash Book maintained on the 'Imprest System'?
- A. To ensure cash balance is always zero
- B. To have a fixed amount at the beginning of each period
- C. To earn interest on petty cash
- D. To eliminate the need for auditing
Answer: B. To have a fixed amount at the beginning of each period
Under the imprest system, the petty cashier is given a fixed sum, and the amount spent is reimbursed, returning the balance to the original fixed amount.
Under the imprest system, the petty cashier is given a fixed sum, and the amount spent is reimbursed, returning the balance to the original fixed amount.