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Financial Accounting
Recording of Transactions – I

Short answer questions:

Q1 :
Briefly state how the cash book is both journal and a ledger?
Q2 :
What is the purpose of contra entry?
Q3 :
What are special purpose books?

Q4 :
What is petty cash book? How it is prepared?
Q5 :
Explain the meaning of posting of journal entries?
Q6 :
Define the purpose of maintaining subsidiary journal.

Q7 :
Write the difference between return inwards and return outwards.
Q8 :
What do you understand by ledger folio?
Q9 :
What is difference between trade discount and cash discount?
Q10 :
Write the process of preparing ledger from a journal.
Q11 :
What do you understand by Imprest amount in petty cash book?

Long answers questions :
Q1 :
Explain the need for drawing up the special purpose books.
Q2 :
What is cash book? Explain the types of cash book.

Q3 :
What is contra entry? How can you deal this entry while preparing double column cash book?

Q4 :
What is petty cash book? Write the advantages of petty cash book?