Double Column Cash Book With Emphasis On Contra-Entry - SS1 Accounting Past Questions and Answers - page 1
What is a double-column cash book?
A financial record with separate columns for cash and bank transactions
A record of cash transactions only
A record of bank transactions only
What is the purpose of a double-column cash book?
To record both cash and bank transactions in the same book
To record cash transactions only
To record bank transactions only
What is a contra entry?
A transaction that involves both cash and bank accounts in the same book but in opposite columns
A transaction that involves only cash
A transaction that involves only bank
How is a contra entry recorded in the cash book?
The same amount is recorded in both cash and bank columns with opposite signs
The same amount is recorded in both cash and bank columns with the same sign
The amount is recorded only in the bank column
What is the purpose of recording both cash and bank transactions in the same book?
To enable easy tracking and reconciliation of cash and bank balances
To complicate the bookkeeping process
To confuse the business owners
What is the difference between a double-column cash book and a single-column cash book?
A double-column cash book records both cash and bank transactions, while a single-column cash book records only cash transactions
A double-column cash book records only cash transactions, while a single-column cash book records both cash and bank transactions
There is no difference between a double-column cash book and a single-column cash book
What is the purpose of a contra entry in the cash book?
The purpose of a contra entry is to reflect the movement of funds between cash and bank accounts in the same business entity.
Why is it important to record both cash and bank transactions in the same book?
Recording both cash and bank transactions in the same book enables easy tracking and reconciliation of cash and bank balances.