Deck 12: The Cash Book

Question 1

Which of the following is a book of original entry and is also part of the ledger?

A) The cash book.
B) The journal
C) The sales day book
D) The purchases day book

Answer 1

The cash book.

Question 2

The company returns goods to the supplier because they were the wrong colour. Which of the following is the correct double entry?

A) Dr. Trade payables Cr. Purchase returns
B) Dr. Purchase returns Cr. Trade payables
C) Dr. Trade receivables Cr. Sales returns
D) Dr. Sales returns Cr. Trade receivables

Answer 2

Dr. Trade payables Cr. Purchase returns

Question 3

The cash book:

A) Records cheques received and paid
B) Records cash received and paid
C) Records bills of exchange receivable
D) Records bills of exchange payable

Answer 3

Records cheques received and paid

Question 4

A cash discount given to a customer should be recorded by:

A) Dr. Customer's account Cr. Discount received account
B) Dr. Customer's account Cr. Discount allowed account
C) Dr. Discount allowed account Cr. Customer's account
D) Dr. Discount received account Cr. Customer's account

Question 5

A trade discount:

A) Does not form part of the double entry system
B) Will have to be debited to the sales account
C) Has to be posted to the credit suppliers account
D) Will be posted to either discount received or discount paid

Question 6

On behalf of the business, you pay D. Grey's account within 10 days. The company owes D. Grey
£10,000 for purchases made. D. Grey agrees to give you a discount of 5%. The accounting entry to
Post this in the books of a company is:

A)
B)
C)
D)

Question 7

Which of the following is not an appropriate reason for differences between the cash book balance and the entity's bank statement?

A) Timing differences
B) Errors
C) Cash payments posted to suppliers accounts
D) Unrecorded direct debits

Question 8

In the cash book a cheque written to an electricity company would be analysed as:

A) Supplier
B) Heat and light
C) General expenses
D) Sundry expenses

Question 9

In the cash book a cheque written for a replacement radiator would be analysed as:

A) Fixtures and fittings
B) Heat and light
C) Repairs and renewals
D) Sundry expenses

Question 10

In the cash book a cheque written to a supplier to settle their account would be analysed as:

A) Purchases ledger
B) Purchases day book
C) Bank
D) Purchases

Question 11

In the cash book a cheque received for the sale of goods would be analysed as:

A) Sales day book
B) Sales ledger
C) Bank
D) Sales

Question 12

In the cash book a cheque paid for goods would be analysed as:

A) Purchases day book
B) Purchase ledger
C) Purchases
D) Bank

Question 13

In the cash book a cheque received from a customer in settlement of their account would be analysed as:

A) Sales day book
B) Sales ledger
C) Bank
D) Sales

Question 14

The double entry to record £500 cash withdrawn from the bank is:

A)
B)
C)
D)

Question 15

£400 Discount given to customers is posted as follows:

A)
B)
C)
D)

Question 16

A. Sparrow returned goods to you because they were faulty. This should be posted by:

A) Dr. A. Sparrow account Cr. Returns outward account
B) Dr. Returns inward account Cr. A. Sparrow account
C) Dr. Bank account Cr. Returns outward account
D) Dr. A. Sparrow account Cr. Returns inward account