CASH BOOK ASSIGNMENT

Question 1

From the following particulars write up the cash book of Rashid Khwaja Trading Co. for the month of October, 2016.

October, 2016

1. Cash in hand $. 200; Balance overdrawn at Bank $ 400.

2. Cash sales $. 1,500; Banked cash $. 1,200.

7. Paid Habib & co. by cheque $150.

10. Received Abdul’s cheque $. 850 and deposited into bank.

14. Paid salaries in cash $. 250; bought goods for cash $ 140.

16. Drew from Bank for office use $ 160.

21. Cash sales $ 21; paid wages in cash $ 120.

23. Received by cheque from Aftab Ahmed $ 360; Discount $ 10.

24. Abdul’s cheque returned by bank unpaid.

27. Sent a cheque to Jones for $ 175; Discount received $. 5.

30. Deposited Aftab’s cheque.

Question2

On April 1, 2017, Hassan Sajjad Store Cash Book showed debit balances of Cash $ 1,550 and Bank $13,575. During the month of

April following business was transacted. You are required to prepare Cash Book?

April 2017

02 Purchased Office Type-Writer for Cash $750; Cash Sales $1,315.

07 Deposited Cash $500 to bank.

10 Received from A. Hussain a cheque for $2,550 in part payment of his account (not deposited).

16 Paid by cheque for merchandise purchased worth $1,005.

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20 Deposited into Bank the cheque received from A. Hussain.

22 Received from customer a cheque for $775 in full settlement of his accounts (not deposited).

24 Sold merchandise to sweet Bros. for $1,500 who paid by cheque which was deposited into bank.

26 Paid creditor a Salman $915 by cheque.

28 Deposited into Bank the cheque of customer of worth $. 775 was dated 22nd April.

29 Paid wages by cash $500 and salary $1,000 by bank.

30 Drew from Bank for Office use $250 and Personal use $150.

Question 3

From the following particulars make cash book of Ghulam Fatima Trading Co. for the month of November, 2016:

1 Cash balance (Cr) $2,000; Bank balance $40,000.

4 Cash sales $. 3,700; Credit sales $1,800 would be received at near future.

6 Paid Ahmed & Bros. by cash $500; Received cash by debtors $1,800.

12 Paid to vendor by means of cheque worth $2,700.

13 Paid Utility bills in cash $250; Bought goods by cheque $750.

19 Drew from Bank for office use $160; Personal withdrawal of cash $1,000.

20 Received a cheque from Hamid $2,700 and deposited into the bank.

21 Received by cheque from Munir s. $1,360; Discount $140 (not deposited).

25 Cash sales $2,100; Paid wages by bank $1,500.

28 Deposited Munir’s cheque into bank.

29 Payment by check to Anees for $ 175; Discount received $25.

30 Munir’s cheque has been dishonored and return by bank.

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Question 4

Enter the following transactions in the Cash Book with Cash, Bank and Discount column for A R Khan and Co. for December, 2016
(All figures are in $):

Cash Book MCQ

1. When any entry is made on the both sides of cash book is called as?
(a) General entry

(b) Double entry

(c) Compound entry

(d) Contra entry

2. Which one of the following affects cash book during a period?

(a) Recording depreciation expense

(b) Declaration of a cash dividend

(c) Write-off of an uncollectible account receivable

(d) Payment of an accounts payable

3. A company issues check to pay account payable. The effect of the transaction is to?
(a) Increase assets and liabilities

(b) Increase assets and decrease liabilities

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(c) Decrease assets and liabilities

(d) Increase assets and stockholder's equity

4. A check received and paid into the bank on the same date is recorded in the?
(a) Bank column of the cash book

(b) Cash column of the cash book

(c) Both the cash and bank column of the cash book

(d) None of above

5. The transaction will be treated as a contra entry when?

(a) Cash withdrew from bank for personal use

(b) Check received from customer and deposited

(c) Cash drew from bank for office use

(d) Non of Above

6. Which one of the following is not correct for cash book?

(a) It is a dual book

(b) It is journalized ledger

(c) It records liabilities

(d) Double Purpose Book

7. Over drawn balance of cash book is recorded on?

(a) If Dr or Cr balance not mentioned will be overdrawn balance

(b) If mentioned O/D balance then will be debited on debit side of cash book

(c) Is Credited if the balance is mentioned as an over drawn balance

(d) None of Above

8. A check received on 12th of December dated 25th December is considered as?

(a) Bank

(b) Cash

(c) Liability

(d) Revenue

9. Which of the following item is not included in the Cash Book?

(a) Purchases of Rs. 10,000

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(b) Sales of Rs.5,000

(c) Received cash for Salman Rs. 2,000

(d) Credit sales of Rs. 22,000

10. Which of the following items is not considered as cash or cash equivalent?
(a) Cash on hand

(b) Bank borrowings

(c) Demand deposits

(d) Investments with a maturity of two months from the date of acquisition

11. The Cash of a business would change as a result of?

(a) A supplier being paid by check and deposited

(b) Raw materials being purchased on credit

(c) Non-current assets being purchased on credit

(d) Wages being paid in cash

12. Contra entry is recorded in?

(a) Double column cash book

(b) Single column cash book

(c) Three column cash book

(d) a and c

13. A book in which cash balance and bank balance are simultaneously maintained is known as?
(a) Simple cash book

(b) Single column cash book

(c) Double column cash book

(d) None-of these

14. If a business shows a debit balance in its own record of its bank balance, this indicates?
(a) The business has a bank overdraft

(b) The business is a debtor in the books of bank

(c) The business has money in the bank

(d) The ledger entry must be wrong

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15. The unfavorable balance of cash in cash book is?
(a) An expense

(b) Liability

(c) A gain

(d) An Asset

16. When a company received check from customer. The effect of the transaction is to?
(a) Increase assets and decrease assets

(b) Increase assets and liabilities

(c) Decrease assets and liabilities

(d) Increase assets and stockholder's equity

17. Cash book involves the?

(a) For payment transactions

(b) Both payment and receipt transactions

(c) For receipt transactions

(d) None

18. The transaction will be treated as a contra entry when?

(a) Cash withdrew from bank for domestic use

(b) Check received from customer and deposited

(c) Cash drew from bank for Business Use

(d) All of given options

19. When a check is received from a customer and it is deposited into the bank for collection but ultimately
returned dishonored, the customer account will be?
(a) Debited

(b) Credited

(c) Becomes a liability

(d) None of the

20. When goods are purchased for cash, the entry will be recorded in the?
(a) Cash book

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(b) Purchases book

(c) Journal

(d) None

21. The balance of petty cash is?

(a) An asset

(b) A liability

(c) An expense

(d) An income

22. All of the following are not considered cash except?

(a) Postage and stamps

(b) Securities

(c) Investments

(d) Cheque

23. Entry representing the reversal or cancellation of an entry on the other side is called?
(a) Closing entry

(b) Contra entry

(c) Bank overdraft

(d) Adjusting entry

24. The debit side discount column of three column cash book is called?
(a) Trade discount

(b) Cash discount

(c) Discount allowed

(d) Discount received

25. The total of the ‘Discounts Allowed’ column in the Cash Book is posted to?
(a) The debit of the Discounts Received account

(b) The debit of the Discounts Allowed account

(c) The credit of the Discounts Allowed account

(d) The credit of the Discounts Received account

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26. Cash discount is provided?
(a) Early payment

(b) Late payment

(c) Bulk purchase

(d) Bulk sales

27. Which of the following explains the imprest system of operating petty cash?
(a) Weekly expenses cannot exceed a set amount

(b)The exact amount of expenses is reimbursed at intervals to maintain a fixed float

(c) All expenses out of the petty cash must be properly authorized

(d) Regular equal amounts of cash are transferred into petty cash at intervals

28. Which of the following payment is made from petty cash?

(a) Purchase of non-current asset

(b) Payment to creditors

(c) Cash deposited into bank

(d) Payment of postage & telegrams

29. Which of the following transactions does not decrease cash?

(a) Purchasing inventory for cash

(b) Accruing operating expenses

(c) Paying trade accounts payable

(d) Purchasing securities that are not cash equivalents

30. Economic resources of business that expected to be of benefit in future time referred as?
(a) Owner Equity

(b) Liabilities

(c) Withdrawals

(d) Asset

31. Liabilities are?

(a) Equal to the sum of assets plus owner’s equity?

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(b) Created when stockholder contributed cash to company by stock exchanges

(c) Obligation of the entity to outsiders

(d) All of above are correct

32. All of following are Assets except?

(a) Prepaid Rent

(b) Goods

(c) Unearned Income

(d) b and c

33. Revenue?
(a) Is a decrease in shareholders’ equity

(b) Is cost of business

(c) Has no impact on shareholders’ equity

(d) Is an increase in shareholders’ equity?

34. Which of the following is an identifiable non-monetary asset without physical substance?
(a) Tangible asset

(b) Intangible asset

(c) Floating asset

(d) Circulating asset

35. Residual interest in the net asset of an entity that remains after deducting its liabilities is?
(a) Owner Equity

(b) Liabilities

(c) Asset

(d) Expense

36. All of following are Expenses except?

(a) Wages

(b) Rent Payable

(c) Salaries

(d) Carriage

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37. Which of the following item of revenue nature?
(a) Dividends payable

(b) Rent incur

(c) Fee earned

(d) Payment for building improvement

38. All economics costs that a business incur through its operation to earn revenues?
(a) Assets

(b) Drawing

(c) Expense

(d) Revenue

39. All of the following are Liabilities except?

(a) Income Receivable

(b) Note Payables

(c) Wages outstanding

(d) None

40. Which of the following is not an asset?

(a) Debtors

(b) Buildings

(c) Cash balance

(d) Bank overdrawn

41. What is owned by a business and used in carrying out its operating activities is best described as?
(a) Liabilities

(b) Owner’s Equity

(c) Revenues

(d) Assets

42. Which of the following is a liability?

(a) Petty cash

(b) Loose tools

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(c) Unearned Revenue

(d) Leasehold premises

43. Assets which have no physical existence and which cannot be seen, touched or felt are?
(a) Current assets

(b) Tangible assets

(c) Fictitious assets

(d) Intangible assets

44. Which of the following is a liability?

(a) Motor Vehicles

(b) Creditors for goods

(c) Machinery

(d) Cash at Bank

45. Which of the following is an expense?

(a) Purchasing operating equipment

(b) Purchasing cleaning service

(c) Purchasing an investment of another company

(d) Purchasing a computer for the accounting

46. Which of the following is an example of an intangible asset?

(a) Copyrights

(b) Good will

(c) Patents

(d) All before

47. Which of the following would not be regarded as an asset?

(a) A piece of equipment owned by a business

(b) A sum of money owed to the business

(c) An inventory of goods that have yet to be sold

(d) Leasehold premises

48. Economic Obligations of the Business are called?

(a) Liabilities

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(b) Assets

(c) Owner Equity

(d) Revenues

49. Which of the following is the liability?

(a) Loose tools

(b) Bill payable

(c) Note Receivable

(d) Electricity bill

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