Chapter Exam

Chapter 8 ACCOUNTANCY : Cash Book — Online MCQ Test

Q: Which of the following is considered both a book of original entry and a ledger?

Answer: B. Cash Book — The Cash Book acts as a book of original entry because transactions are recorded first in it, and it functions as a ledger account because it serves as the cash account.

Q: The balance of the Petty Cash Book is a/an:

Answer: C. Asset — The balance of cash in hand, including petty cash, represents money owned by the firm, hence it is an asset.

Q: When a cheque received from a customer is deposited into the bank on the same day, it is recorded in:

Answer: B. Bank column of the cash book — Cheques received and deposited on the same day are treated as bank transactions and recorded in the bank column.

Q: A business receives a cheque for Rs. 5000 and allows a discount of Rs. 100. If the cheque is deposited next day, how is it recorded?

Answer: C. Debit journal, then bank when deposited — Since the cheque is not deposited immediately, it must first be recorded in the journal proper as a receipt of cash/cheque, then deposited later.

Q: In a three-column cash book, if Rs. 2000 is withdrawn from the bank for office use, the contra entry will appear as:

Answer: B. Debit Cash, Credit Bank — Withdrawal for office use increases cash and decreases bank; hence, debit cash column and credit bank column.

ACCOUNTANCY · CLASS 11 INTER I YEAR · Andhra State Board

Practice Chapter 8 ACCOUNTANCY : Cash Book with a free chapter-wise online MCQ test for Andhra State Board CLASS 11 INTER I YEAR ACCOUNTANCY. This chapter covers: This chapter details recording cash transactions using single column double column three column and petty cash book formats.. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 8 ACCOUNTANCY : Cash Book — Important Questions & Answers (FAQ)

Frequently asked questions from Andhra State Board CLASS 11 INTER I YEAR ACCOUNTANCY — Chapter 8 ACCOUNTANCY : Cash Book, with answers and explanations. These are sample questions; the exam has its own separate question set.

Which of the following is considered both a book of original entry and a ledger?

A. Journal
B. Cash Book ✓
C. Purchases Day Book
D. Sales Day Book

Answer: B. Cash Book
The Cash Book acts as a book of original entry because transactions are recorded first in it, and it functions as a ledger account because it serves as the cash account.

The balance of the Petty Cash Book is a/an:

A. Liability
B. Expense
C. Asset ✓
D. Income

Answer: C. Asset
The balance of cash in hand, including petty cash, represents money owned by the firm, hence it is an asset.

When a cheque received from a customer is deposited into the bank on the same day, it is recorded in:

A. Cash column of the cash book
B. Bank column of the cash book ✓
C. Journal proper
D. Petty cash book

Answer: B. Bank column of the cash book
Cheques received and deposited on the same day are treated as bank transactions and recorded in the bank column.

A business receives a cheque for Rs. 5000 and allows a discount of Rs. 100. If the cheque is deposited next day, how is it recorded?

A. Debit cash column 4900, discount 100
B. Debit bank column 5000
C. Debit journal, then bank when deposited ✓
D. Debit cash 5000

Answer: C. Debit journal, then bank when deposited
Since the cheque is not deposited immediately, it must first be recorded in the journal proper as a receipt of cash/cheque, then deposited later.

In a three-column cash book, if Rs. 2000 is withdrawn from the bank for office use, the contra entry will appear as: