Question

Fill in the Correct Words :
(a) Cash book is a $.............$ journal.
(b) In Journal proper, only $.............$ discount is recorded.
(c) Return of goods purchased on credit to the suppliers will be entered in $.............$.
Journal.
(d) Assets sold on credit are entered in $.............$
(e) Double column cash book records transaction relating to $.............$.and $.............$.
(f) Total of the debit side of cash book is $.............$than the credit side.
(g) Cash book does not record the $.............$ transactions.
(h) In double column cash book $.............$ transactions are also recorded.
(i) Credit balance shown by a bank column in cash book is $.............$
(j) The amount paid to the petty cashier at the beginning of a period is known as
$.............$ amount.
(k) In purchase book goods purchased on $.............$ are recorded.

Answer 1

(a) financial

(b) cash

(c) the purchase return journal

(d) sales journal

(e) cash, bank

(f) more

(g) bank

(h) cash and bank

(i) bank overdraft

(j) imprest

(k) credit

Explanation:

(a) Cash book is a financial journal.

It is a financial journal that contains all types of disbursements and cash receipts.  

(b) In Journal proper, only cash discount is recorded.

It only records the trade transactions which are done in cash.

(c) Return of goods purchased on credit to the suppliers would be entered in the purchase return journal.

The goods returned from various reasons such as defect and poor quality have to be recorded in this journal.

(d) Assets sold on credit are entered in sales journal.  

(e) Double column cash book records transaction relating to cash and bank.  

This cash book has two sides which are debit and credit and that is  why contains transactions of both natures cash and bank.

(f) Total of the debit side of cash book is more than the credit side.

(g) Cash book does not record the bank transactions.

As the name says cash book, it only involves and records cash transaction.

(h) In double column cash book cash and bank transactions are also recorded.

(i) Credit balance shown by a bank column in cash book is bank overdraft.

(j) The amount paid to the petty cashier at the starting of a period is said as imprest amount.

The imprest amount is an amount which is given by the cashier to the petty cashier.

(k) In purchase book goods purchased on credit are recorded.

The cash transactions are not recorded in the purchase book while only credit transactions are recorded.