CASH BOOK

The Balance of Petty Cash is :

• (a) An Expense

• (b) Revenue

• (c) An asset

• (d) Liability

Cash book is a form of:

• (a) Trial Balance

• (b) Ledger

• (c) Journal

• (d) All of the above

Small payments are recorded in a book called

• (a) Cash Book

• (b) Small payments book

• (c) Purchase book

• (d) Petty cash book

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

Cheques received but deposited on the next day are recorded in:

• (a) Cash column of the cash book

• (b) Bank column of the cash book

• (c) Both of these

• (d) None of these

In petty cash Book, the system followed:

• (a) Accrual System

• (b) Imprest System

• (c) Cash System

• (d) None of these

Double entry in Cash Book is completed when:

• (a) Salaries are paid by cheque

• (b) Withdrawal of money from bank for personal use

• (c) Deposited cash into bank

• (d) None of these

Imprest amount - ₹ 500. What will be the amount of re-imbursement if following expenses were incurred by the petty cashier during the month – Telephone = ₹150, Tiffin = ₹ 50, small Repairs = ₹ 30 general expenses = ₹ 100

• (a) 300

• (b) 170

• (c) 330

• (d) 270

Interest received of 100 was recorded as interest paid. What will be the effect on cash balance?

• (a) Cash will reduce by 100.

• (b) Cash will increase by 200.

• (c) Cash will reduce by 200.

• (d) No effect on cash balance.

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