In a cash book, what does the L.F. column stand for?
Correct answer D. Ledger folio
Topic / 36 questions
Cash Book MCQs
Cash Book MCQs cover the book used to record all cash and bank receipts and payments, including column types, discounts and petty cash. They help commerce students and banking job applicants revise bookkeeping basics, and every question shows its correct answer as soon as you select an option.
During a period with a nil opening bank balance, a business deposits Rs 50,000 and issues cheques worth Rs 62,000. What does the bank column show at the end?
Correct answer D. A credit balance (overdraft) of Rs 12,000
To which account is the total of the discount column on the debit side of the cash book posted?
Correct answer C. Debit of discount allowed account
Advertisement
When cash is withdrawn from the bank for office use, how is it recorded in a three-column cash book?
Correct answer B. Debit cash column and credit bank column
When surplus office cash is deposited into the bank, how is it recorded in a three-column cash book?
Correct answer C. Debit bank column and credit cash column
Why is the cash book said to serve two purposes?
Correct answer C. It is both a book of original entry and a ledger account
Which balance can the cash column of a cash book never show?
Correct answer D. A credit balance
A business has opening cash of Rs 5,000. It makes cash sales of Rs 12,000, pays wages of Rs 3,000 and pays rent of Rs 2,500. What is the closing cash balance?
Correct answer D. Rs 11,500
On which side of a three-column cash book is discount allowed to customers recorded?
Correct answer C. Debit side
Advertisement
Under the imprest system, a petty cashier starts with Rs 10,000 and spends Rs 7,350 during the period. How much is reimbursed to restore the imprest?
Correct answer B. Rs 7,350
What is a petty cash book with separate columns for different types of expenses called?
Correct answer A. Analytical petty cash book
A customer owing Rs 20,000 pays by cheque after receiving a 5% cash discount. What amount is entered in the bank column of the cash book?
Correct answer B. Rs 19,000
A business pays a supplier Rs 30,000 in cash less a 2% cash discount. What is entered in the discount column of the cash book?
Correct answer C. Rs 600 on the credit side
Which type of discount is never recorded in the cash book?
Correct answer A. Trade discount
Which of the following transactions is NOT recorded in the cash book?
Correct answer D. Credit sale of goods
Advertisement
Which of the following statements is true?
Correct answer D. The Cash Book is a subsidiary book as well as a ledger.
What is an entry recorded on both sides of the cash book called?
Correct answer B. Contra entry
A cash book records:
Correct answer C. Both cash receipts and cash payments
Who prepares a business’s cash book?
Correct answer D. Accountant of business
On which side of the cash book is discount received recorded?
Correct answer B. Payments
About Cash Book MCQs
This topic explains how a business records cash movements. Questions cover which side of the cash book shows receipts, such as capital introduced by the owner on the debit side, and how discount received appears on the credit side in the discount column. You will meet the single, double and triple column cash book, the last having cash, bank and discount columns, and the petty cash book used for small payments, often kept under the imprest system. Items also ask who prepares the cash book and how items like postage stamps on hand are treated. These questions appear in banking and accounts tests.
Exams that include Cash Book MCQs
Pakistan
- PPSC
- FPSC
- NTS
- Banking job tests
India
- SSC CGL
- IBPS Clerk
- SBI PO
Bangladesh
- Bank job exams
- Bangladesh Bank recruitment
- Government job tests
Frequently asked questions
What is a triple column cash book?
A triple column cash book has three money columns on each side: cash, bank and discount. It records cash and bank transactions together with discounts allowed on the debit side and discounts received on the credit side. It reduces the need for a separate bank account in the ledger.
What is a petty cash book?
A petty cash book records small, routine payments such as postage, stationery and travel. It is usually kept by a petty cashier under the imprest system, where a fixed amount is given at the start of a period and the amount spent is reimbursed at the end, restoring the original balance. This keeps the main cash book free of minor entries.
Last reviewed October 2026