In a three-column cash book, the discount columns are: MCQ with Answer and Explanation

In a three-column cash book, the discount columns are:
A. Ignored at month end
B. Totalled but not balanced
C. Balanced like cash columns
D. Transferred to suspense account
Answer: Option B
Solution (By JKSSB Mock Tests)
Discount Allowed and Discount Received are separate nominal accounts. Their columns are only totalled and posted directly to the respective ledger accounts.

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Practice More Accountancy and Book Keeping Questions

Question #1
A 'Provision' is recognized when:
A. Management decides
B. There is a present obligation, probable outflow, reliable estimate
C. For all future losses
D. It is certain

Correct Answer: Option B


Explanation:
As per AS 29, provision is recognized when these three conditions are met.

Question #2
In Social Accounting, which of the following is considered an internal stakeholder?
A. Employees
B. Local Community
C. Government
D. Environmental Agencies

Correct Answer: Option A


Explanation:
Employees work within the organization and are directly involved in its operations, classifying them as internal stakeholders.

Question #3
The minimum subscription in a public issue should be at least:
A. 90% of issued capital
B. 100%
C. 50% of issued capital
D. 75% of issued capital

Correct Answer: Option A


Explanation:
As per SEBI, minimum subscription is 90% of the issue size for public offers.