83 + Interview Questions in SUBSIDIARY BOOKS IN GENERAL AWARENESS Page 2 InterviewSolution

51.	Give a word/term or phrase for each of the following statements:(i) Source document on the basis of which Sales Return Book is prepared.(ii) Accounting entries passed in the journal proper in the beginning of the financial year.(iii) Accounting entries are passed in the journal proper at the end of the financial year.(iv) Bank’s refusal to pay the amount of cheque to the payee.(v) Book in which small payments are recorded.
Answer» (i) Credit Note (ii) Opening Entries (iii) Closing Entries (iv) Dishonour of Cheque (v) Petty Cash Book

51.

Give a word/term or phrase for each of the following statements:(i) Source document on the basis of which Sales Return Book is prepared.(ii) Accounting entries passed in the journal proper in the beginning of the financial year.(iii) Accounting entries are passed in the journal proper at the end of the financial year.(iv) Bank’s refusal to pay the amount of cheque to the payee.(v) Book in which small payments are recorded.

Answer»

(i) Credit Note

(ii) Opening Entries

(iii) Closing Entries

(iv) Dishonour of Cheque

(v) Petty Cash Book

Discussion

52.	State whether the following statement are True or False with reason :The total of the payment side can be greater than the total of the receipt side in the case of the bank column.
Answer» This statement is True. It is an overdraft on the current account.

52.

State whether the following statement are True or False with reason :The total of the payment side can be greater than the total of the receipt side in the case of the bank column.

Answer»

This statement is True.

It is an overdraft on the current account.

Discussion

53.	Give a word/term or phrase for each of the following statements:(i) Type of bank account in which money is deposited for a fixed period of time.(ii) A written order is issued by the account holder to the bank to pay a certain amount from his account.(iii) A cheque on which two parallel transverse lines are drawn on its face at the left-hand top corner with or without certain words.(iv) A person who endorses the cheque.(v) A person in whose favour the cheque is endorsed.
Answer» (i) Fixed Deposit Account (ii) Cheque (iii) Crossed Cheque (iv) Endorser (v) Endorsee

53.

Give a word/term or phrase for each of the following statements:(i) Type of bank account in which money is deposited for a fixed period of time.(ii) A written order is issued by the account holder to the bank to pay a certain amount from his account.(iii) A cheque on which two parallel transverse lines are drawn on its face at the left-hand top corner with or without certain words.(iv) A person who endorses the cheque.(v) A person in whose favour the cheque is endorsed.

Answer»

(i) Fixed Deposit Account

(ii) Cheque

(iii) Crossed Cheque

(iv) Endorser

(v) Endorsee

Discussion

54.	State whether the following statements are True or False with reason:Cash Book records transactions relating to receipts and payments of cash.
Answer» This statement is True. Cashbook is prepared for cash transactions only. All incomes are receipts and they are recorded on the debit side of Cashbook. All expenses are payments recorded to the credit side.

54.

State whether the following statements are True or False with reason:Cash Book records transactions relating to receipts and payments of cash.

Answer»

This statement is True.

Cashbook is prepared for cash transactions only. All incomes are receipts and they are recorded on the debit side of Cashbook. All expenses are payments recorded to the credit side.

Discussion

55.	How many types of subsidiary books are there ?(a) Four(b) Ten(c) Nine(d) Eight
Answer» Correct option is (d) Eight

Discussion

56.	What are Subsidiary Books?
Answer» Subdivision of journals on the basis of nature of transactions is known as Subsidiary Books.

Discussion

57.	Briefly explain about contra entry with examples.
Answer» To denote that there are contra entries, the alphabet ‘C’ is written in L.F. column on both sides. Contra means that particular entry is posted on the other side (contra) of the same book, because Cash account and Bank account are there in the cash book only and there are no separate ledger accounts needed for this purpose. The alphabet ‘C’ indicates that no further posting is required and the relevant account is posted on the opposite side.

Discussion

58.	What is a Cash Book?
Answer» The subsidiary book in which details of cash are received in the form of cash, cheques, drafts, etc., and details of payment made in the form of cash, cheques, drafts, etc. is called a cash book.

Discussion

59.	Which sales are recorded in Sales Book?
Answer» Credit sales of goods are recorded in Sales Book.

Discussion

60.	Which transactions are recorded in Purchase Book?
Answer» Goods purchased on credit for resale are only recorded in the Purchase Book.

Discussion

61.	State the meaning of ‘Contra entry’.
Answer» The accounting entries which appear on both the sides of cash book are called contra entries.

Discussion

62.	Small payments are recorded in a book called ……(a) Cash book (b) Purchase book (c) Bills payable book(d) Petty cash book
Answer» (d) Petty cash book

Discussion

63.	Which transactions are recorded in the Journal Proper?
Answer» Journal Proper is meant for recording opening entries, closing entries, adjustment entries, transfer entries, and rectification entries.

Discussion

64.	Give a word/term or phrase for each of the following statement:i. The entry is recorded on both sides of the cash book.ii. Name the account which encourages personal savings.iii. A note was issued by the buyer to the seller giving full details of goods returned.iv. A note was issued by the seller on receipt of defective goods from the customer.v. Name the bank account on which overdraft facility is given to the Account holder.
Answer» i. Contra Entry ii. Saving Account iii. Debit Note iv. Credit Note v. Current Account

64.

Give a word/term or phrase for each of the following statement:i. The entry is recorded on both sides of the cash book.ii. Name the account which encourages personal savings.iii. A note was issued by the buyer to the seller giving full details of goods returned.iv. A note was issued by the seller on receipt of defective goods from the customer.v. Name the bank account on which overdraft facility is given to the Account holder.

Answer»

i. Contra Entry

ii. Saving Account

iii. Debit Note

iv. Credit Note

v. Current Account

Discussion

65.	State the meaning of the imprest system of Petty Cash Book.
Answer» Imprest System of Petty cash book is a system in which head cashier gives fixed (imprest) amount to the petty cashier at the beginning of month/fortnight to meet the expenses of that period. Later on the shortfall after meeting the expenses is reimbursed by the head cashier.

Discussion

66.	Cash book is a ……(a) Subsidiary book (b) Principal book (c) Journal proper (d) Both subsidiary book and principal book
Answer» (d) Both subsidiary book and principal book

Discussion

67.	Give a word/term or phrase for each of the following statement:i. A person who maintains Petty Cash Book.ii. A bank account which the businessman prefers to open.iii. Petty Cash Book in which the payment side is ruled in suitable columns.iv. Subsidiary book in which only credit purchases of goods are recorded.v. Subsidiary book in which return of goods sold on credit is recorded.
Answer» i. Petty Cashier ii. Current Account iii. Analytical Petty Cash Book iv. Purchase Book v. Sales Return Book

67.

Give a word/term or phrase for each of the following statement:i. A person who maintains Petty Cash Book.ii. A bank account which the businessman prefers to open.iii. Petty Cash Book in which the payment side is ruled in suitable columns.iv. Subsidiary book in which only credit purchases of goods are recorded.v. Subsidiary book in which return of goods sold on credit is recorded.

Answer»

i. Petty Cashier

ii. Current Account

iii. Analytical Petty Cash Book

iv. Purchase Book

v. Sales Return Book

Discussion

68.	Correct the following sentences and rewrite them the same:Small and large business records all transactions in subsidiary books.
Answer» Large business records all transactions in subsidiary books.

Discussion

69.	Who is a Petty Cashier?
Answer» A cashier in charge of recording transactions in a petty cash book is known as Petty Cashier.

Discussion

70.	The cash book records ……(a) All cash receipts(b) All cash payments (c) Both (a) and (b) (d) All credit transactions
Answer» (c) Both (a) and (b)

Discussion

71.	Correct the following sentences and rewrite them the same:The person who maintains the Petty Cash Book is called Chief Cashier.
Answer» The person who maintains the Petty Cash Book is called Petty Cashier.

Discussion

72.	Correct the following sentences and rewrite them the same:Cash Book records cash transactions as well as credit transactions.
Answer» Cash Book records only cash transactions.

Discussion

73.	Cash purchases for ₹ 1,60,000 at 10% T.D. and 5% C.D. What is the amount of Net purchases?
Answer» Gross Price = ₹ 1,60,000 Less: 10% T.D. = ₹ 16,000 Net Price = ₹ 1,44,000 Less: 5% C.D. = ₹ 7,200 Net Purchases = ₹ 1,36,800

73.

Cash purchases for ₹ 1,60,000 at 10% T.D. and 5% C.D. What is the amount of Net purchases?

Answer»

Gross Price = ₹ 1,60,000

Less: 10% T.D. = ₹ 16,000

Net Price = ₹ 1,44,000

Less: 5% C.D. = ₹ 7,200

Net Purchases = ₹ 1,36,800

Discussion

74.	Correct the following sentences and rewrite them the same:Cash purchases of goods are recorded in the Purchase book.
Answer» Cash purchases of goods are recorded in Cashbook.

Discussion

75.	Complete the following Table.
Answer» Answer is: 2,000

Discussion

76.	State whether the following statements are True or False with reason:Cash and credit purchases are entered in Purchase Book.
Answer» This statement is False. Only credit purchases are entered in Purchase Book.

76.

State whether the following statements are True or False with reason:Cash and credit purchases are entered in Purchase Book.

Answer»

This statement is False.

Only credit purchases are entered in Purchase Book.

Discussion

77.	State whether the following statements are True or False with reason:Cash sales are entered in Sales Journal.
Answer» This statement is False. Cash sales are entered in the cash book.

77.

State whether the following statements are True or False with reason:Cash sales are entered in Sales Journal.

Answer»

This statement is False.

Cash sales are entered in the cash book.

Discussion

78.	State whether the following statements are True or False with reason:Assets sold on credit are entered in Sales Journal.
Answer» This statement is False. Assets sold on credit are entered in Journal Proper.

78.

State whether the following statements are True or False with reason:Assets sold on credit are entered in Sales Journal.

Answer»

This statement is False.

Assets sold on credit are entered in Journal Proper.

Discussion

79.	Sold 30 Jackets at ₹ 500 per Jacket at 8% Trade discount, What is the amount of Trade discount?
Answer» Sales Value = 30 Jackets × ₹ 500 = ₹ 15,000 Trade Discount = 15,000 × \(\frac{8}{100}\) = ₹ 1,200

79.

Sold 30 Jackets at ₹ 500 per Jacket at 8% Trade discount, What is the amount of Trade discount?

Answer»

Sales Value = 30 Jackets × ₹ 500 = ₹ 15,000

Trade Discount = 15,000 × \(\frac{8}{100}\) = ₹ 1,200

Discussion

80.	Sold 50 Shirts at ₹ 300 per shirt and 40 Trousers at ₹ 600 each. What is the amount of sales?
Answer» (1) 50 Shirts × ₹ 300 = ₹ 15,000 (2) 40 Trousers × ₹ 600 = ₹ 24,000 Total Sales = ₹ 39,000

80.

Sold 50 Shirts at ₹ 300 per shirt and 40 Trousers at ₹ 600 each. What is the amount of sales?

Answer»

(1) 50 Shirts × ₹ 300 = ₹ 15,000

(2) 40 Trousers × ₹ 600 = ₹ 24,000

Total Sales = ₹ 39,000

Discussion

81.	What is a ‘Pay-in slip’?
Answer» Pay-in-slip is a document used by the account holder for depositing cash as well as cheque into the bank.

Discussion

82.	All cash transactions are straightway recorded in the ……(a) cash book (b) ledger (c) journal (d) contra
Answer» (a) cash book

Discussion

83.	Cash receipts are recorded on the …… of the cash book. (a) debit side (b) credit side (c) journal (d) ledger
Answer» (a) debit side

83.

Cash receipts are recorded on the …… of the cash book. (a) debit side (b) credit side (c) journal (d) ledger

Answer»

(a) debit side

Discussion

Explore topic-wise InterviewSolutions in .

State whether the following statement are True or False with reason :The total of the payment side can be greater than the total of the receipt side in the case of the bank column.

State whether the following statements are True or False with reason:Cash Book records transactions relating to receipts and payments of cash.

How many types of subsidiary books are there ?(a) Four(b) Ten(c) Nine(d) Eight

What are Subsidiary Books?

Briefly explain about contra entry with examples.

What is a Cash Book?

Which sales are recorded in Sales Book?

Which transactions are recorded in Purchase Book?

State the meaning of ‘Contra entry’.

Small payments are recorded in a book called ……(a) Cash book (b) Purchase book (c) Bills payable book(d) Petty cash book

Which transactions are recorded in the Journal Proper?

State the meaning of the imprest system of Petty Cash Book.

Cash book is a ……(a) Subsidiary book (b) Principal book (c) Journal proper (d) Both subsidiary book and principal book

Correct the following sentences and rewrite them the same:Small and large business records all transactions in subsidiary books.

Who is a Petty Cashier?

The cash book records ……(a) All cash receipts(b) All cash payments (c) Both (a) and (b) (d) All credit transactions

Correct the following sentences and rewrite them the same:The person who maintains the Petty Cash Book is called Chief Cashier.

Correct the following sentences and rewrite them the same:Cash Book records cash transactions as well as credit transactions.

Cash purchases for ₹ 1,60,000 at 10% T.D. and 5% C.D. What is the amount of Net purchases?

Correct the following sentences and rewrite them the same:Cash purchases of goods are recorded in the Purchase book.

Complete the following Table.

State whether the following statements are True or False with reason:Cash and credit purchases are entered in Purchase Book.

State whether the following statements are True or False with reason:Cash sales are entered in Sales Journal.

State whether the following statements are True or False with reason:Assets sold on credit are entered in Sales Journal.

Sold 30 Jackets at ₹ 500 per Jacket at 8% Trade discount, What is the amount of Trade discount?

Sold 50 Shirts at ₹ 300 per shirt and 40 Trousers at ₹ 600 each. What is the amount of sales?

What is a ‘Pay-in slip’?

All cash transactions are straightway recorded in the ……(a) cash book (b) ledger (c) journal (d) contra

Cash receipts are recorded on the …… of the cash book. (a) debit side (b) credit side (c) journal (d) ledger