If a cheque received from a customer is endorsed to a creditor on the same day, it is recorded in: MCQ with Answer and Explanation

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If a cheque received from a customer is endorsed to a creditor on the same day, it is recorded in:

A. Cash Book

B. Journal Proper

C. Sales Book

D. Pass Book only

Answer: Option B

Solution (By JKSSB Mock Tests)

Since no cash or bank balance of the business changes, endorsement of a cheque is recorded in the Journal Proper.

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

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Question #1

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If the total of debit side of trial balance is ₹1,50,000 and credit side is ₹1,45,000, the suspense account will be:

A. Credit ₹1,50,000

B. Debit ₹1,45,000

C. Credit ₹5,000

D. Debit ₹5,000

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Correct Answer: Option C

Explanation:
Credit side is short by ₹5,000, so suspense account is credited to balance.

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

Question #2

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In the context of the Cash Book, the term 'C' written against an entry stands for:

A. Credit

B. Contra

C. Cash

D. Carry forward

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Correct Answer: Option B

Explanation:
The letter 'C' in the Ledger Folio column signifies a contra entry, which impacts both cash and bank columns.

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

Question #3

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S1: Income Tax is a direct tax. S2: Income Tax is levied by the State Governments in India. Which statement(s) is/are correct?

A. S2 only

B. S1 only

C. Both S1 and S2

D. Neither S1 nor S2

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Correct Answer: Option B

Explanation:
Income Tax is a direct tax levied on the income of individuals and entities. However, it is levied and collected by the Central Government, not the State Governments. S1 is correct, S2 is incorrect.

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

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