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Recording Of Transactions – II

Test your understanding – I

1. When a firm maintains a cash book, it need not maintain :
i.Journal Proper
ii.Purchases (journal) book
iii.Sales (journal) book
iv..Bank and cash accounts in the ledger

2. Double column cash book records
i.All Transactions
ii.Cash and Bank Transactions Only cash transactions
iii.Only bank transactions

3. Goods purchased on cash are recorded in the
i.Purchases (journal) book
ii.Sales (journal) book
iii.Cash book Purchases return (journal) book

4. Cash book does not record transactions of
i.Cash nature
ii.Credit nature Cash and credit nature
iii.None of these

5. Total of these transactions is posted in purchases account
i.Purchase of furniture
ii.Cash and credit purchase
iii.Purchases return
iv.Purchase of stationery

6. The periodic total of sales return journal is posted to :
i.Sales account
ii.Goods account
iii.Purchase returns account
7. Credit balance of bank account in cash book shows :
i.Overdraft
ii.Cash deposited in our bank
iii.Cash withdrawn from bank
iv.None of these
8. The periodic total of purchases return journal is posted to :
i.Purchase account
ii.Profit and loss account
iii.Purchase returns account
iv.Furniture account
9. Balancing of account means :
i. Total of debit side
ii. Total of credit side
iii. Difference in total of debit & credit
iii. None of these