Chapter 7: Subsidiary Books - II — Online MCQ Test
ACCOUNTANCY · CLASS 11th · Tamil Nadu State Board
Practice Chapter 7: Subsidiary Books - II with a free chapter-wise online MCQ test.
This chapter covers: Focusing on cash transactions this chapter details single column two column and three column cash books alongside petty cash book systems. Students master cash management entries a....
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Chapter 7: Subsidiary Books - II — Important Questions & Answers
Which subsidiary book is considered both a book of original entry and a ledger?
- A. Purchases Book
- B. Cash Book
- C. Sales Return Book
- D. Journal Proper
Answer: B. Cash Book
The cash book records cash transactions first and also functions as a ledger account for cash and bank balances.
The cash book records cash transactions first and also functions as a ledger account for cash and bank balances.
In a Single Column Cash Book, only which type of transactions are recorded?
- A. Credit transactions
- B. Cash transactions
- C. Non-cash transactions
- D. Bank transactions
Answer: B. Cash transactions
A single column cash book is designed exclusively to record actual cash receipts and cash payments.
A single column cash book is designed exclusively to record actual cash receipts and cash payments.
A 'contra entry' appears in the Three Column Cash Book when:
- A. Cash is received from a customer
- B. Cash is paid to a creditor
- C. Cash is deposited into the bank or withdrawn from the bank for office use
- D. A cheque is received from a debtor
Answer: C. Cash is deposited into the bank or withdrawn from the bank for office use
A contra entry affects both cash and bank columns simultaneously on opposite sides of the cash book.
A contra entry affects both cash and bank columns simultaneously on opposite sides of the cash book.
When a cheque previously deposited into the bank is dishonoured, the entry in the Cash Book will be:
- A. Credit side of bank column
- B. Debit side of bank column
- C. Debit side of cash column
- D. No entry required
Answer: A. Credit side of bank column
Dishonour of a cheque reduces the bank balance, hence it must be recorded on the credit (payment/reduction) side of the bank column.
Dishonour of a cheque reduces the bank balance, hence it must be recorded on the credit (payment/reduction) side of the bank column.
A cheque received from a customer is endorsed to a creditor. This transaction is recorded in:
- A. Cash Book (Bank column)
- B. Cash Book (Cash column)
- C. Journal Proper
- D. Sales Book
Answer: C. Journal Proper
Since no actual cash or bank transaction occurs involving the entity's bank account, it must be recorded in the Journal Proper.
Since no actual cash or bank transaction occurs involving the entity's bank account, it must be recorded in the Journal Proper.