Get free access to MCQs on Cashbook & Trial Balance.
In this blog post, we have provided Accounting MCQs on Cashbook and trial Balance. A total of 39 multiple choice questions are provided with answers.
MCQs on Cashbook
1. Cash book is a book in which all cash ________ and cash ________ are recorded.
Receipts, payments
Loss, profits
Income, expenditure
None of the above
2. The petty cashier meets all small payments out of this _______ amount.
Miscellaneous amount
Interest amount
Sundry amount
None of the above
3. ___________ entry is when transactions relate to both cash and bank side of Bank Column Cash Book.
Debit entry
Credit entry
Contra entry
None of the above
4. _______________ is when cheque received from customer is given to some other party.
Acceptance
Agreement
Endorsement
None of the above
5. ____________ is credit balance of Bank Column of Cash Book.
Liquidation
Overdraft
Insolvency
None of the above
6. A separate cash book to record small transactions is called ————————
Simple Cash Book
Petty Cash Book
Cash Account
Bank Column Cash Book
7. When a cash book is maintained, cash transactions are not in —————————
Cash Account
Bank Column Cash Book
Journal
Petty Cash Book
8. The assistant of Head Cashier is known as.
Assistant Cashier
Cash Assistant
Deputy Head Cashier
Petty Cashier
9. Which is not the type of cash book
Simple Cash Account
Bank Column Cash Book
Petty Cash Book
Simple Cash Book
10. Centre Entries is:
Cash Sales
Payment of Salary
Purchase of Furniture
Cash deposit in Bank
11. A Bill payables is posted on the debit side of ______ account from bills payable book
Debtors account
Creditors account
Furniture account
None of the above
12. _________________ book is maintained to record transactions which do not fiond place in Special journals.
Journal proper
Special purpose Book
Bills payable
Bills receivable
13. In which book, will the following transaction be entered-
Salary pre-paid
Journal Proper
Sales Book
Sales Return Book
None of the above
14. In which book, will the following transaction be entered-
Depreciation charged on building
Journal Proper
Sales Book
Sales Return Book
None of the above
15. Acceptance by debtors for credit sales of trading items made by seller have to recorded in ———————- books.
Bill receivable books
Bill payable book
Purchase book
Journal
16. Acceptance by debtors for credit purchases of trading items made by the seller have to be recorded in ————————- books.
Bills receivable Book
Purchase Book
Bills payable Book
Sales Book
17. Which transaction is not recorded in the Journal proper?
Adjusting entries
Rectification entries
Non-monetary entries
Transfer entries
18. Sale Journal records
Cash Sales
Credit sales
Total Sales
None of these
19. When a customer purchases goods in bulk, the vendor allows him a discount which is called
Cash discount
Trade discount
Off-season discount
None of them
MCQs on Trial Balance
20. Trial Balance is a statement containing balances of all ledger accounts of a business concern on a ______________.
Particular date
Particular time
Particular year
Particular month
21. If the total of Trial Balance does not agree the difference is put to-
Financial Statements
Balance Sheet
Suspense Account
None of the above
22. In this method, trial Balance is prepared by combining the first and the second methods.
Balance Method
Total Method
Balance Total method
None of the above
23. Which of the following is not a column of Trial Balance-
Ledger account
Debit balance
JF
Credit Balance
24. What happens to Suspense Account when Trial Balance is rectified-
Increases
Disappears
Decreases
None of the above
25. Which is not the method of preparing Trial Balance?
Balance Method
Double accounting Method
Balance Total Method
Total Method
26. How many columns are there in Trial Balance?
Four
Eight
Three
Five
27. Trial balance proves ——————accuracy of posting in the ledge.
Performance
Accounting
Arithmetical
Physical
28. With the help of Trial Balance we can prepare.
Financial Statement
Ledger
Journal
Cash Book
29. Which is not the objective of Trial Balance?
To help in preparing financial statements.
To help in making adjustments
To check arithmetical accuracy.
To help in locating errors between cash book and pass book
30. which method of depreciation is approved by the income tax act
Reducing Balance Method
Straight-line method
Annuity method
None of these
31. Amortization referred to writing off
Depleting
Wasting assets
Intangible asset
Fictitious asset
32. Which of the following best describe depreciation
Valuation of fixed assets at the end of the year
Verification of the asset
Decreasing the market value of the asset
Allocation of cost of a fixed asset over its useful life
33. Depreciation is calculated from the date of
Purchase of assets
Receipt of assets at business premises
Intangible asset
Assets installed
34. X ltd purchases a machine on 1st July 2012 for Rs. 50000. Depreciation is to charge @10% pa. What will be the amount of depreciation if the books are closed on 31st March every year.
5000
3750
10000
5000
35. X ltd sold a machine for Rs. 55000 at a loss of Rs. 5000 on which depreciation has been charged Rs. 12000. The cost of the machine was
62000
72000
55000
50000
36. In the WDV method depreciation is charged on
Cost price
Market price
Reduced Value
None of these
37. In this method of depreciation the value of the asset will be zero at the end of its use full life
WDV METHOD
Straight-line method
Annuity method
None of these
38. The book value of the asset was after charging 3-year depreciation @ 10 % pa is Rs. 7290. What was the cost of the machine?
10000
11000
8000
9000
39. In which method of depreciation, an equal amount of depreciation will be debited to p/l a/c?
WDV METHOD
Straight-line method
Annuity method
None of these
Thanks for reading MCQs on Cashbook & Trial Balance on our website.