Cash Book MCQ Questions

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CHAPTER-10

1. When a firm maintains a cash book, it 6. On 1st April 2016, balance of cash
need not maintain column of cash book was Rs. 10,000.
After receiving Rs. 2,000 from Anil,
(a) Journal Proper
giving a cheque of Rs. 3,200 to Sunil and
(b) Purchase Book making payment of wages Rs.500,
(c) Sales Book balance of cash will be:

(d) Cash and Bank Accounts in Ledger (a) Rs. 11,500 (b) Rs. 8,300

2. The balance of bank column of cash book (c) Rs. 8,800 (d) Rs. 6,300
always shows a balance. 7. On 1st May 2016, cash book bank
(a) Debit overdraft balance was Rs. 2,000. On
depositing Rs. 10,000 into bank and
(b) Credit giving a cheque of Rs. 7,200 for rent, the
(c) Either Debit or Credit balance will be:
(d) Neither Debit nor Credit (a) Rs. 4,800 Dr. (b) Rs. 4,800 Cr.
3. Which of the following will be recorded (c) Rs.800 Dr. (d) Rs.800 Cr.
as Contra-entry: 8. Which of the following is not recorded in
(a) Cash directly deposited into bank by cash book:
a customer (a) Trade Discount
(b) Payment made to creditor by cheque (b) Bad Debts
(c) Cash deposited into bank (c) Credit Purchases
(d) Cash sales (d) All of the above
4. A cheque received and deposited into 9. Which is not contra entry in the cash
bank the same day will be recorded in book
cash book in
(a) Cash deposited into bank
(a) Cash column on debit side
(b) Cash withdrawn from bank
(b) Cash column on credit side
(c) Cash withdrawn from bank for
(c) Bank column on debit side personal use
(d) Bank column on credit side (d) None of these
5. When a cheque deposited into bank is 10. If the debit as well as credit aspects of a
dishonoured by bank, it will be recorded transaction are recorded in the cash book,
in cash book in: it is called
(a) Bank column on debit side (a) Contra Entry
(b) Bank column on credit side (b) Compound Entry
(c) Cash column on debit side (c) Opening Entry
(d) Cash column on credit side (d) Adjustment Entry

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