A 'Contra Entry' in the cash book involves: MCQ with Answer and Explanation

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A 'Contra Entry' in the cash book involves:

A. Bank and discount columns

B. Cash and discount columns

C. Cash and bank columns only

D. Only bank column

Answer: Option C

Solution (By JKSSB Mock Tests)

Contra entries affect both cash and bank columns (e.g., cash deposited, cash withdrawn).

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Practice More Accountancy and Book Keeping Questions

Question #1

The 'Reverse Charge Mechanism' under GST means:

A. Tax is paid by the supplier

B. Tax is exempt

C. Tax is paid by the recipient of supply

D. Tax is deferred

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Correct Answer: Option C

Explanation:
Under reverse charge, the liability to pay GST shifts from the supplier to the recipient.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

Under single entry system, opening capital is ascertained by preparing:

A. Statement of affairs

B. Income and expenditure account

C. Trading account

D. Profit and loss account

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Correct Answer: Option A

Explanation:
In single entry, a statement of affairs (similar to balance sheet) is prepared to ascertain opening and closing capital.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

Under single entry system, it is often difficult to prepare:

A. Personal accounts

B. Profit and Loss Account and Balance Sheet

C. Debtors list

D. Cash account

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Correct Answer: Option B

Explanation:
Because real and nominal accounts are incomplete, final accounts cannot be prepared directly.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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