CBSE Class 11 Accountancy Subsidiary Books I Cash Book Worksheet

Question. What will be the amount reflected in the sales return book of ZXC Ltd if 2 table fans @ Rs 5,000 each are returned by QWE Ltd.? There was a trade discount of 15 %. CGST and SGST are at 6% each.
(a) Rs 9,520
(b) Rs 10,000
(c) Rs 8,500
(d) None of these
Answer. A

Question. Which of the following differentiates between credit note and debit note?
(a) The credit note is prepared by the seller and the debit note is prepared by the buyer.
(b) The credit note is prepared by the buyer and the debit note is prepared by the seller.
(c) The credit note is prepared by the customer and the debit note is prepared by the cashier.
(d) None of the above
Answer. A

Question. M/s ABC & Sons sold 40 ink pads @ Rs 8 each, 50 files @ Rs 10 each, 20 colours books @ Rs 20 each to Global Stationers and provided 5% trade discount. GST of 5% is applicable on stationery product. How this transaction will be recorded in Global Stationers account?
(a) To Sales A/c Rs 1,216.95
(b) By Sales A/c Rs 1,216.9
(c) By Sales A/c Rs 1,220
(d) To Sales A/c Rs 1,159
Answer. A

Question. Which of the following entries are recorded in journal proper?
(a) Purchase of items on credit other than goods
(b) Goods withdrawn by the owner for personal use
(c) Endorsement and dishonour of bills of exchange
(d) All of the above
Answer. D

Question. Goods distributed as samples for sales promotion worth Rs 25,000 will be recorded in
(a) Sales book
(b) Cash book
(c) Journal proper
(d) None of these
Answer. C

Question. Balancing of an account means that the two sides are totalled and the difference between them is shown on the side,which is shorter in order to make their totals equal.
(a) True
(b) False
(c) Can’t say
(d) Partially true
Answer. A

Question. The accounts of expenses/losses and gains/revenues are also balanced.
(a) True
(b) False
(c) Can’t say
(d) Partially true
Answer. B

Question. Match the following.
Column I                        Column II
A. Debit note                 (i) Purchase book
B. Credit note                (ii) Principle
book/Journal
book
C. Credit sale of asset    (iii) Purchaser
D. Cash purchase of       (iv) Seller
asset
Codes
      A   B    C   D 
(a) (iii) (iv) (ii) (i)
(b) (i) (iv) (ii) (iii)
(c) (iii) (ii) (iv) (i)
(d) (iii) (i) (ii) (iv)
Answer. A

Question. Under ………………. system, a definite sum is given to the petty cashier at the beginning of certain period and the amount spent is reimbursed from time-to-time.
(a) financial
(b) accounting
(c) imprest
(d) None of these
Answer. C

Question. Which of the following method(s) can be used to prepare a petty cash book?
(a) Ordinary system
(b) Imprest system
(c) Financial system
(d) Only (a) and (b)
Answer. D

Question. What is the journal entry passed if cheques received are deposited on different dates?
(a) Cheques-in-hand A/c Dr
To Debtors
(b) Debtors A/c Dr
To Cheques-in-hand
(c) Bank A/c Dr
To Debtors
(d) None of the above
Answer. A

Question. Given-Imprest amount = Rs 10,000. What will be the amount of reimbursement, if following expenses were incurred by the petty cashier during the month?
Wages = Rs 1,900 , Tiffin = Rs 1,200, Small repairs = Rs 900, General expenses = Rs 450.
(a) Rs 1,900
(b) Rs 2,100
(c) Rs 4,000
(d) Rs 4,450
Answer. D

Question. The periodic total of sales return journal is posted to
(a) Sales account
(b) Goods account
(c) Purchases return account
(d) Sales return account
Answer. D

Question. The sales return book does not record which of the following?
(a) Return of goods sold on cash basis.
(b) Return of goods sold on credit basis.
(c) Return of assets other than the goods in which the firm deals in.
(d) Both (a) and (c)
Answer. D

Question. The source document for recording entries in the sales return book is generally the ……… .
(a) credit note
(b) debit note
(c) trial balance
(d) None of these
Answer. A

CBSE Class 11 Accountancy Chapter 4 Recording of Transactions II Case Based MCQs

Direction Read the following case study and answer questions on the basis of the same.

INCA Ltd. a manufacturing company has now expanded its operations. Its sales are increasing rapidly and the demand for its products is also rising. It is expanding geographically to different states. Initially when the operations were small, its accountant Mr.Dheeraj maintained only a journal. But as the business expands and the number of transactions becomes large, it become cumbersome to journalise each transaction. So now a need is felt to prepare special journals or subsidiary books. So accordingly, Mr. Dheeraj instructs his subordinates to prepare various subsidiary books.

Questoin. What will be the advantage of preparing these subsidiary books?
(a) Quick, efficient and accurate recording of business transactions
(b) Time consuming
(c) They prove economical and make division of labour possible in accounting work
(d) Both (a) and (c)
Answer. D

Questoin. What reason will be a cash book prepared for?
(a) To record all cash receipts and cash payments
(b) To record cash purchases of merchandise
(c) To record cash sales
(d) None of the above
Answer. A

Questoin. Which of the following about the purchase book is correct?
(a) It records purchases of all types
(b) It records all credit purchases of the goods, the enterprise deals in
(c) It records all cash purchases of the goods, the enterprise deals in
(d) None of the above
Answer. B

Questoin. Sales book does not record cash sales of merchandise.
(a) True
(b) False
(c) Can’t say
(d) Partially true
Answer. A

Questoin. If INCA Ltd. purchased furniture of Rs 40,000 on credit, Mr. Dheeraj will record this transaction in
(a) purchase book
(b) cash book
(c) journal proper
(d) None of the above
Answer. C

ASSIGNMENT- 6 TOPIC – SUBSIDIARY BOOKS I- CASH BOOK

Q1) What are subsidiary books? Enumerate its advantages.

Q2) Why is cash book treated as a journal as well as a ledger?

Q3) What is a Petty Cash book? Explain the imprest system of Petty cash book.

Q4) Prepare a three column cash book of M/s AB & Co. from the following particulars:

2011

Jan 1 Cash in hand Rs.50,000, Bank overdraft Rs.20,000

Jan 2 Paid into bank Rs. 10,000

Jan 3 Bought goods from Hari for Rs.200 for cash

Jan4 Bought goods for Rs.2,000, paid cheque for them, discount allowed 1%

Jan 5 Sold goods to Mohan for cash Rs.1,175

Jan 6 Received a cheque from Shyam to whom goods were sold for Rs. 800. Discount allowed 12.5%

Jan7 Shyam’s cheque deposited into bank.

Jan 8 Purchased an old typewriter for Rs. 200. Spent Rs. 50 on its repairs.

Jan 9 Bank notified that Shyam’s cheque has been returned dishonoured and debited the

account in respect of charges Rs.10.

Jan 10 Received a money order for Rs. 25 from Hari.

Jan 11 Shyam settled his account by means of a cheque for Rs.820, Rs. 20 being for interest charged.

Jan 12 Withdrew from bank Rs.10,000.

Jan 18 Discounted a B/E for Rs.1,000 at 1% through bank.

Jan 20 Honoured our own acceptance by cheque Rs. 5,000.

Jan 22 Withdrew for personal use Rs. 1,000.

Jan 24 Paid trade expenses Rs.2,000.

Jan 25 Withdrew from bank for private expenses Rs.1,500.

Jan 26 Purchased machinery from Rajiv for Rs.5,000 and paid him by means of a bank draft purchased for Rs. 5,005.

Jan 27 Issued cheque to Ram Saran for cash purchase of furniture Rs. 1,575.

Jan 28 Received a cheque for commission Rs. 500 from R. & Co. and deposited into bank.

Jan 29 Ramesh who owed us Rs.500 became bankrupt and paid us 50 paise in the rupee.

Jan 30 Received payment of a loan of Rs. 5,000 and deposited Rs.3,000 out of it into the bank.

Jan 31 Paid rent to landlord ‘ Mohan’ by a cheque of Rs.220.

Jan 31 Interest allowed by bank Rs.30.

Jan 31 Half yearly bank charges Rs.50.