Chapter : 4
Recording of Transactions-II
Questions For Practice
Short Answers
1. Briefly state how the cash book is both journal and a ledger.
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2. What is the purpose of contra entry?
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3. What are special purpose books?
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4. What is petty cash book? How it is prepared?
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5. Explain the meaning of posting of journal entries?
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6. Define the purpose of maintaining subsidiary journal.
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7. Write the difference between return Inwards and return ouwards.
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8. What do you understand by ledger folio?
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9. What is difference between trade discount and cash discount?
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10. Write the process of preparing ledger from a journal.
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11. What do you understand by Imprest amount in petty cash book?
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Long Answers
1. Explain the need for drawing up the special purpose books.
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2. What is cash book? Explain the types of cash book.
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3. What is contra entry? How can you deal this entry while preparing double column cash book?
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4. What is petty cash book? Write the advantages of petty cash book?
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5. Describe the advantages of sub-dividing the Journal.
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6. What do you understand by balancing of account?
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