answer this with reasons please.. . ..
refer to given picture
Answers
Q.) State whether the given statements are True or False with reasons.
1. Journal is a book of secondary entry.
The given statement is False.
Journal is a book of primary entries.
2. Assets sold on credit entered in sales journal.
The given statement is False.
Assets sold on credit are entered in Journal Proper.
3. Cash and credit purchases are entered in purchase book.
The given statement is False.
Not cash, but only credit purchases are entered in purchase book.
4. Cash sales are entered in sales journal.
The given statement is False.
Cash Sales are recorded in cash book only.
5. Cash book records transactions related to receipts and payments of cash.
The given statement is True.
Cash book is prepared for recording only the cash transactions. All incomes are recepits, which are recorded on debit side of cash book, whereas expenses, being payments are recorded on credit side.
6. Total of payment side can be greater than total of receipt side in case of bank coloumn.
The given statement is True.
It is overdraft on current account.
7. Cheque received and deposited into bank on the same day is a contra entry.
The given statement is False.
Cheque received and deposited into bank on the same day is not a contra entry.
8. Interest on overdraft charged by bank is recorded in the cash column.
The given statement is False.
Interest on overdraft charged by bank is recorded in the bank column.
9. It is not necessary to record dishonour of cheques in the cash book.
The given statement is False.
It is necessary to record dishonour of cheques in the cash book.
10. Businessman generally operates saving bank account.
The given statement is False.
Businessman generally operates current account with bank.
Q).4. state whether the following statements are True or False with reasons.
*(1) Journal entry is the book of secondary entry.
Ans:- (False).
*(2) Assets sold on credit are entered in sales Journal.
Ans:- (False).
*(3) Cash and credit purchases are entered in purchase book.
Ans:- (False).
*(4) Cash sales are entered in sales Journal.
Ans:- (False).
*(5) Cash book records transactions relating to receipts and payments of Cash.
Ans:- (True).
*(6) Total of payment side can be greater than total of receipt side in case of bank column.
Ans:- (True).
*(7) cheque received and deposited into bank on the same day is a contra entry.
Ans:- (False).
*(8) Interest on overdraft charged by bank is recorded in the cash column.
Ans:- (False).
*(9) It is not necessary to record dishonour of cheques in the Cash bank.
Ans:- (False).
*(10) Businessman generally operates saving bank account.
Ans:- (False).