MCQs on Cashbook & Trial Balance in accounting

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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.




 None of the above

5. ____________ is credit balance of Bank Column of Cash Book.




 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


 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


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


 Credit Balance

24. What happens to Suspense Account when Trial Balance is rectified-




 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?





27. Trial balance proves ——————accuracy of posting in the ledge.





28. With the help of Trial Balance we can prepare.

 Financial Statement



 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


 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.





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





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


 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?





39. In which method of depreciation, an equal amount of depreciation will be debited to p/l  a/c?


 Straight-line method

 Annuity method

 None of these

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