The bank column can have either a debit or a credit balance. The trial balance a is a listing of all the general ledger account balances at a particular date. Uses of petty cash book its a cash book used to enter daily petty expenses like cost of stationery, postage and xerox copy and so on. We would like to show you a description here but the site wont allow us. The cash book is updated from original accounting source documents, and is therefore a book of prime entry and as such, can be classified as a special journal. A cash book is a type of subsidiary book where cash or bank receipts and cash or bank payments made during a period are recorded in a chronological order. Any difference may be attributed to credit transfers from customers and standing order payments not recorded in the cash book. In most cases, the petty cash book is an actual ledger book, rather than a computer record. A petty cash book is generally maintained on a columnar basis a separate column being allotted for each type of expenditure.
It is another cash book which is maintained, generally, in large business concerns to reduce the burden of main cash book, in which numerous transactions involving petty small amounts are recorded. Book of original entries cash book mcqs 1 the closing balance of petty cash book is considered as a liability b asset c expenses d income 2 payment. Take our basic bank reconciliation test to check out your knowledge of bank reconciliations used in double entry bookkeeping. Each month, accountants or other employees will need to balance petty cash and replenish the funds. The person who maintains the petty cash book is known as petty cashier. Multiple choice questions for accounting in the sets of 10 each on one page with.
Theory questions on a petty cash book were also included in this question. A separate column is allotted for each type of expenditure. Similarly, when cash is paid out the same is recorded on the credit or right hand side of the cash book. Each t account contains the exact amount owing to a supplier a sales ledger b purchases ledger c general ledger d cash book 2. Recording of transactions ii petty cash book solutions. This test is rated positive by 93% students preparing for ca foundation. When cash is received it is entered on the debit or left hand side. Thus, the book is part of a manual recordkeeping system. The closing balance of petty cash book is considered as. Cash book multiple choice questions mcqs quiz with answers. A cash book that is used to record the small payments of cash is generally referred as a simple cash book b two column cash book c three column cash book d petty cash book. Recording of transactions ii petty cash book solutions this page contains the cbse accountancy class 11 chapter recording of transactions ii notes.
General knowledge multiple choice questions mcqs page1. Just click the start quiz button and start cash book mcqs quiz. The credit side consists of several analysis columns. These mcqs can help you to prepare for your exams, interviews and different tests. Introduction capital by owner of business is recorded on which side of a cash book. Cash book with cash and discount column is mostly referred as a simple cash book b two column cash book c three column cash book d petty cash book. This section of the paper consisted of 10 multiple choice questions from across the syllabus. Cash book 1 30 questions mcq test has questions of ca foundation preparation. This test is rated positive by 90% students preparing for ca foundation. Petty cash balance is a liability b income c expense d asset. Petty cash book definition petty cash book is maintained to record small.
Any transaction which cannot be recorded in any book of prime entry is recorded in a cash book b petty cash book c general journal d day books. Cash book mcqs mcqs for preparation of fpsc, nts, kppsc, ppsc, and other test. The closing balance of petty cash book is considered as asset. Which of the following is an item of capital expenditure.
The petty cashier of john and james company paid cash for the following expenditures during march 2018. Solutionby examveda team petty cash balance is asset. For this purpose, a petty cashier is appointed by the chief cashier. Dec 17, 2019 cash book in accounting the cash book is a chronological record of the receipts and payments transactions for a business. During september the following transactions take place. Petty cash book is an accounting book used for recording expenses which are small and of little value, for example, stamps, postage and handling, stationery, carriage, daily wages, etc. Petty cash book definition, types, format, examples. If you find difficulty in answering these questions, read cash book chapter thoroughly from explanation section of the. How much should the petty cashier receive to reimburse the float at the end of december.
You can find the questionsanswerssolutions for the chapter 4 of cbse class 11 accountancy in this page. Petty cash book format example definition explanation. If you find difficulty in answering these questions, read cash book chapter. The following financial accounting mcqs are collected from different past papers and from accounting mcqs bank. Single column, double column, three column and petty cash book. It is another cash book which is maintained, generally, in large business. Cash book mcqs 2 set is available for accounting students. A company typically uses petty cash to make small purchases or reimburse employees for minor expenditures. The is only one money column on the debit side and all sum received from time to time by the petty cashier from the chief cashier are entered in it. The true bank balance shown in the balance sheet comes from a adjusted cash book b bank statement c petty cash book d cash flow statement answers 1. The majority of the multiple choice questions in question 1 were. Candidates were required to prepare a petty cash book, make ledger.
Cah book mcqs 1 is a set of multiplechoice question related to all four types of cash book i. The correct answer is in the cash column on the debit side of the cash book option 3. Cash book definition, example and format of cash book. Solutionby examveda team the closing balance of petty cash book is considered as asset. Accounting mcqs for preparation of various test announced by fpsc, kppsc, nts, ppsc. Cash book is a book of original entry in which transactions relating only to cash receipts and payments are recorded in detail. Mcq for class 12 accountancy cbse set 2 page 5 of 7. Cash book 2 9 questions mcq test has questions of ca foundation preparation. There are two primary types of entries in the petty cash b. The closing balance of petty cash book is considered as a liability b asset c expenses d income. These are expenses which are incurred day after day. These mcqs are very helpful for the preparation of various posts of senior auditor, junior auditor, accountant and for cost accountant. Receipts are recorded on the debit the left hand side, and payments are recorded on the credit right hand side. The closing balance of petty cash book is considered as examveda.
Cash book multiple choice questions mcqs quiz with. Take a quick multiple choice questions mcqs test about cash book. Meaning of petty cash book the word petty is derived from the french word petit which means small. A bank interest received b payments made directly into the traders bank account c standing order for property tax paid directly by the bank. Petty cash book a i and ii bi and iii cii and iii diii and iv 5. Bank reconciliation test the bank reconciliation process is a means of ensuring that the cash book of the business is reconciled to the bank statement provided by the bank. Debiting the petty cash book with the exact amount spent in the previous period is an example of.
Practice questions for accounting page 50 admission global. Bank reconciliation statement shows causes of differences. Petty cash book definition the petty cash book is defined as relatively small amount of cash kept at hand for making quick payments for miscellaneous small expenses in the business concern. In part b most candidates recognised that a balance sheet was used to. Cash book uses for cash related transactions of the business organization. At the end of december the petty cashier had spent. Petty cash book is maintained to record small expenses such as postage, stationery, telegram. Petty cash transactions involve small cash read more. Businesses maintain a petty cash book to record petty cash transactions except recording all the cash transactions in the cash book.
The difference between the total of the debit items and that of the total column on the credit represents the balance of the petty cash in hand. Bank reconciliation statement mcqs 1 is a set of multioptions questions of brs. Meaning, types and importance of petty cashbook srd law notes. The person who maintains the main cash book and advance money to petty cashier to meet petty expenses is the main or head cashier. This mcq test is related to ca foundation syllabus, prepared by ca foundation teachers.