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. Transferred to suspense account
B. Balanced like cash columns
C. Ignored at month end
D. Totalled but not balanced
Answer: Option D
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
If opening capital is Rs 1,00,000, closing capital is Rs 1,50,000, and drawings are Rs 20,000, what is the profit for the year assuming no additional capital?
A. Rs 50,000
B. Rs 1,70,000
C. Rs 30,000
D. Rs 70,000

Correct Answer: Option D


Explanation:
Profit = Closing Capital + Drawings - Opening Capital. Profit = 1,50,000 + 20,000 - 1,00,000 = Rs 70,000.

Question #2
In cost accounting, the term 'Opportunity Cost' means:
A. The benefit foregone by choosing one alternative over another
B. The cost of raw materials
C. The actual cost incurred
D. The depreciation cost

Correct Answer: Option A


Explanation:
Opportunity cost is the potential benefit that is given up when one alternative is selected over another.

Question #3
Input Tax Credit under GST is available only if:
A. The supplier has uploaded the invoice in GSTR-1 and it appears in GSTR-2B
B. Goods are purchased from unregistered dealer
C. Goods are exempted
D. Payment is made in cash

Correct Answer: Option A


Explanation:
ITC can be claimed only if the invoice details are reflected in the recipient's GSTR-2B.