Double Column Cash Book With Emphasis On Contra-Entry - SS1 Accounting Past Questions and Answers - page 1
1
What is a double-column cash book?
View related lesson
A
A financial record with separate columns for cash and bank transactionsÂ
Â
B
A record of cash transactions only
C
A record of bank transactions only
2
What is the purpose of a double-column cash book?
View related lesson
A
To record both cash and bank transactions in the same book
B
To record cash transactions only
C
To record bank transactions only
3
What is a contra entry?
View related lesson
A
A transaction that involves both cash and bank accounts in the same book but in opposite columns
B
A transaction that involves only cash
C
A transaction that involves only bank
4
How is a contra entry recorded in the cash book?
View related lesson
A
The same amount is recorded in both cash and bank columns with opposite signs
B
The same amount is recorded in both cash and bank columns with the same sign
C
The amount is recorded only in the bank column
5
What is the purpose of recording both cash and bank transactions in the same book?
View related lesson
A
To enable easy tracking and reconciliation of cash and bank balances
B
To complicate the bookkeeping process
C
To confuse the business owners
6
What is the difference between a double-column cash book and a single-column cash book?
View related lesson
A
A double-column cash book records both cash and bank transactions, while a single-column cash book records only cash transactions
B
A double-column cash book records only cash transactions, while a single-column cash book records both cash and bank transactions
Â
C
There is no difference between a double-column cash book and a single-column cash book
7
What is the purpose of a contra entry in the cash book?
View related lesson
8
Why is it important to record both cash and bank transactions in the same book?
View related lesson
Loading lesson…