Question # 1

All cash purchases and cash sales are recorded in

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Cash book

Purchases book

Sales book

Purchases and sales book

An entry which is recorded on the both sides of cash book is called

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Simple entry

Compound entry

Combined entry

Contra entry

When cash is withdrawn from the bank for the personal use of the owner, must be debited to

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Cash account

Bank account

Drawings account

Capital account

A double column cash book is used to record

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Cash transactions only

Cash and bank transaction

Cash, bank and discount transaction

None of these

When money is paid to a creditor or supplier a receipt is obtained from him which is called

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Cash voucher

Cash payment

Receipt voucher

Payment voucher

A document evidencing cash receipts and payments and forming the basis for making entries in the cash book is called

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Receipt voucher

Cash voucher

payment voucher

Cash memo

When cash is received from debtor or customer, generally a receipt is issued to the debtor which is called

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Payment voucher

Receipt voucher

Cash voucher

None of these

When cheque received, and deposited into bank, bank account must be

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Credited

Debited

Both debited & credited

None of these

Unfavorable balances mean

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Credit balance in the pass book

Credit balance in the cash book

Debit balance in bank statement

Both b & c

A cash account always shows

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Debit balance

Credit balance

Both debit and credit balance

Nil balance

Our cheque to Ali & Bros, returned dishonored should be credited to

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Cheque account

Cash account

Bank account

Ali & Bros account

Received a cheque from Bilal Rs. 1900 in ful settlement of his debt Rs. 2000 should be debited to

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Cash account

Discount allowed account

Bank account

Both a & b

.The cash book is a

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Subsidiary journal

Ledger account

Subsidiary journal and ledger

Trial balance

Bank reconciliation statement is prepared by

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Banker

Customer's accountant

Auditors

Manager

paid to Nadeem cash Rs. 5000 and a cheque for Rs. 4800 in full settlement of his dued Rs. 10000 should be credited to

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Cash account

Bank account

Discount received account

All of these

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Principles of accounting Icom Part 1 English Medium Chapter 8 Online Test MCQs With Answers

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