Test your Knowledge in Accounting

TEST YOUR KNOWLEDGE
Whether the following statements are true or false;
(a) Discount columns of the Cash Book represent Discount A/c in the Ledger.
(!) j IS ank columns of the Cash Book represent Bank A/c in the Ledger,
(c). Cash columns of the Cash Book represent Cash A/c in the Ledger,
(d). Bank columns of the Cash Book always show debit balance.
(e) Discount columns of the Cash Book always show credit balance.
(f) Contra entries appear on both sides of the Cash Book.
[True: b,c,f. Fqlse: a, d, e.]
The following are some of the causes of difference between^the Cash Book and the Pass Book balances. If you start with the Cash Book balance (Dr.) in the Bank Reconciliation Statement, will you add mem or deduct?
Cheque issued but not paid by the bank. Cheque deposited but not credited by the bank.
Amount directly deposited by a customer into the bank but not recorded in the Cash Book.
Dividend collected by the bank but not entered in the. Cash Book. Insurance premium paid by the bank but not recorded in the Cash Book.' . Interest on deposits credited by the bank but not recorded in the Cash, Book. Bank charges debited by the bank but not recorded in the Cash Book.
Cheque deposited and "returned dishonored by the bank but no entry for dishonor was
passed in the Cash Book.
Cheque issued but returned dishonored by the creditor, not recorded in the Cash Book.
Cheque deposited but no entry was passed in.the Cash Book.
Cheque debited in the Cash Book but omitted to be banked.
Cheque deposited but wrongly entered in die Cash Column of the Cash Book.
Cheque deposited but wrongly entered on the Credit, side of the Cash Book.
Cheque issued but no entry was made in the Cash Book,
Cheque issued but wrongly recorded in the Cash Column of the Cash Book. .. •
Cheque issued but wrongly debited in the <^ash Book.
Cheque issued but the bank recorded it wrongly on the credit side of the Cash Book.
Credit side of the1 Cash Book was under cast,
Debit side the Cash book was overcast. .
Cheque deposited into the bank but recorded twice in the Cash Book.
i , - '
Cheque issued but recorded twice in the Cash Book: Cheque deposited but entered twice in the Pass Book, Cheque issued but entered twice in the pass Book.: a, c, d, i, j, I, m, r,v,w.
Deduct: b,e,f,g,h,k, n, o, p, q, s, t, u, x.J