Cash book is a_______

(a)

Subsidiary book

(b)

Principal book

(c)

Journal proper

(d)

Both subsidiary book and principal book

The cash book records____.

(a)

All cash receipts

(b)

All cash payments

(c)

Both (a) and (b)

(d)

All credit transactions

When a firm maintains a simple cash book, it need not maintain_______.

(a)

Sales account in the ledger

(b)

Purchases account in the ledger

(c)

Capital account in the ledger

(d)

Cash account in the ledger

A cash book with discount, cash and bank column is called_______

(a)

Simple cash book

(b)

Double column cash book

(c)

Three column cash book

(d)

Petty cash book

In Triple column cash book, the balance of bank overdraft brought forward will appear in_________

(a)

Cash column debit side

(b)

Cash column credit side

(c)

Bank column debit side

(d)

Bank column credit side

_________ transactions are not recorded in the cash book

(a)

Cash

(b)

Credit

(c)

Both

(d)

None of these

___________ discount is allowed to the parties making prompt or immediate payment.

(a)

Trade

(b)

Credit

(c)

Cash

(d)

None of these

The ______________ column Cash book is prepared on the lines of simple cash book

(a)

Single

(b)

Double

(c)

Three

(d)

None of these

In addition to cash dealings, every business may use cheques as a means of ___________

(a)

receipts

(b)

payment

(c)

incomes

(d)

expenses

What is three column cash book?

What is cash discount?

What is trade discount?

What is a petty cash book?

Is it safe and convenient to carry on the business transactions only in cash?

Explain the meaning of imprest system of petty cash book.

Briefly explain about contra entry with examples.

What are the importance of cash book?

Explain the types of petty cash books?

When his business becomes large, what other books will he be maintaining?

Enter the following transactions in a single column cash book of Seshadri for May, 2017

May 1	Particulars	Rs
5	Cash in hand	40,000
7	Cash received from Swathi	4,000
10	Purchased goods from Sasikala for cash	6,000
15	Sold goods for cash	9,000
18	Purchased computer	15,000
22	Cash paid to Sabapathi	5,000
28	Paid Salary	2,500
30	Interest received	500

Enter the following transaction in Chandran's cash book with cash and discount column.

	Particulars	Rs
2017 Nov 1	Cash balance	22,000
2	Cash Sales	14,000
3	Credit sales to Govindan	12,000
4	Credit purchases from Balaraman	27,000
5	Cash purchases	8,800
8	Govindan settled his account @ 2% cash discount
12	Paid Balaraman Rs. 26,800 and settle his account
15	Cash withdrawn for personal expenses	4,000
28	Cash paid into Bank	5,000
29	Received from Madhan Rs. 4,800 in settlement of his account for	5,000
30	Paid salaries in cash	4,000