When cash is withdrawn from the bank for office use, how is it recorded in a three-column cash book?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
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Accounting MCQs
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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
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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
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
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
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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
The cash book shows a debit bank balance of Rs 50,000. Cheques of Rs 8,000 issued to suppliers have not yet been presented. Ignoring other items, what is the balance as per the bank statement?
Correct answer D. Rs 58,000
The cash book shows a debit bank balance of Rs 30,000. Cheques of Rs 6,000 deposited have not yet been credited by the bank. Ignoring other items, what is the balance as per the bank statement?
Correct answer A. Rs 24,000
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What do non-trading organisations prepare instead of a profit and loss account?
Correct answer C. Income and Expenditure Account
By what other name is the depreciation fund method known?
Correct answer B. Sinking Fund Method
What does a tender represent?
Correct answer A. Estimation of selling price
Which cost category includes warehouse rent?
Correct answer B. Distribution cost
What does overhead cost consist of?
Correct answer C. all indirect costs.