Chapter Exam

Chapter 8 ACCOUNTANCY : Subsidiary Books and Cash Book — Online MCQ Test

Q: Which subsidiary book is used to record only credit purchases of goods?

Answer: A. Purchase Book — The Purchase Book is exclusively used to record credit transactions involving the purchase of goods in which the business deals.

Q: What is the primary purpose of maintaining a Petty Cash Book?

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.

Q: What is a 'Contra Entry' in a double-column cash book?

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when a transaction affects both the cash account and the bank account, such as cash deposited into the bank or cash withdrawn from the bank for office use.

Q: If an asset is purchased on credit, where should it be recorded?

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.

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 for Andhra State Board CLASS 11 INTER I YEAR COMMERCE. 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.. AI-generated questions from basic to board-exam level, with instant results and explanations.

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

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

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.

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.

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.

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.

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.

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