Purchase of office equipment for cash will be recorded on which of the following sides of a cash book?

Related Mcqs:

1. A company was entered in hire purchase agreement and had to pay $1000 per month. Three payments were made via bank account but no entry was found in cash book. Identify the correct adjustment in cash book

   A. $1000 will be added to cash book balance
   B. $2000 will be deducted from cash book balance
   C. $3000 will be added to cash book balance
   D. $3000 will be subtracted from cash book balance

2. A discount of $2000 was given to a supplier on his prompt repayment of debt but the cashier entered the gross amount in cash book. What should be the adjustment in cash to work out the correct balance of cash book?

   A. $2000 will be debited in cash book
   B. $2000 will be credited in cash book
   C. $4000 will be debited in cash book
   D. $4000 will be credited in the cash book

3. An entry which is made on both sides of a cash book is called__________?

   A. Cash entry
   B. Contra entry
   C. Payment entry
   D. Compound entry

4. Bank charges amounting to $5000 was not entered in the cash book. Identify the correct adjustment in cash book?

   A. Bank charges will be debited in cash book
   B. Bank charges will be added to cash book balance
   C. Bank charges will be credited in cash book
   D. Bank charges need no adjustment in cash book

5. Bank sent debit advice of $500 to company being interest on overdraft. It wasn’t entered in cash book. Identify the correct adjustment in cash book.

   A. $500 will be debited
   B. $500 will be credited
   C. Non-adjustable
   D. $1000 will be subtracted

6. $5000 deposited in bank account was entered twice in the cash book. Identify the correct adjustment in cash book.

   A. $5000 will be credited
   B. $5000 will be debited
   C. $10,000 will be credited
   D. $10,000 will be debited

7. Discount received is recorded on which of the following side of a cash book?

   A. Receipts
   B. Payments
   C. Incomes
   D. Expenditures

8. Drawings by owner of business are generally recorded on which of the following side of a cash book?

   A. Receipts
   B. Payments
   C. Incomes
   D. Expenditures

9. Introduction capital by owner of business is recorded on which side of a cash book?

   A. Receipts
   B. Payments
   C. Incomes
   D. Expenditures

10. Payment of rent expenses is recorded on which side of cash book?

    A. Receipts
    B. Payments
    C. Income
    D. Expense