Cash Book
Accounts · 50 practice questions
Columnar cash books (single, double and three column); discounts; the petty cash book and imprest system.
- Determine the cash float.
- Differentiate between two- and three-column cash books and how transactions are recorded in them.
- Differentiate between trade and cash discounts and examine their effects in the books of account.
- Identify various petty cash expenses.
Try a few questions
- Practice question 1
Folio numbers, recorded in a cash book, specifically help cross-reference entries to their corresponding account in
- A.the business's own annual tax return exclusively
- B.an entirely unrelated, separate cash book kept by a different business
- C.a factor entirely unrelated to cross-referencing entries of any kind
- D.the ledger
Show the answer
D. the ledger
Folio numbers, recorded in a cash book, specifically help cross-reference entries to their corresponding account in the ledger.
- Practice question 2
Cash discount of 5% is allowed on an invoice of ₦4,000 paid promptly. The discount amount is
- A.₦800
- B.₦20
- C.₦400
- D.₦200
Show the answer
D. ₦200
Discount amount = 4,000 x 0.05 = ₦200.
- Practice question 3
Cash in hand at the start of the week is ₦2,000; cash received from debtors is ₦6,500; cash paid for expenses is ₦1,200. The closing cash balance is
- A.₦9,700
- B.₦7,300
- C.₦3,300
- D.₦5,300
Show the answer
B. ₦7,300
Closing cash balance = 2,000 + 6,500 - 1,200 = ₦7,300.
More UTME Accounts topics
- Nature and Significance of Bookkeeping and Accounting
- Principles of Double Entry
- Ethics in Accounting
- Bank Transactions and Reconciliation Statements
- Final Accounts of a Sole Trader
- Stock Valuation
- Control Accounts and Self-Balancing Ledgers
- Incomplete Records and Single Entry
- Manufacturing Accounts
- Accounts of Not-For-Profit-Making Organizations
- Departmental Accounts
- Branch Accounts
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