S1: A debit voucher is prepared for cash payments. S2: A journal voucher is prepared for non-cash transactions. Which statement(s) is/are correct? MCQ with Answer and Explanation

S1: A debit voucher is prepared for cash payments. S2: A journal voucher is prepared for non-cash transactions. Which statement(s) is/are correct?
A. S2 only
B. S1 only
C. Neither S1 nor S2
D. Both S1 and S2
Answer: Option A
Solution (By JKSSB Mock Tests)
A payment voucher (not debit voucher) is prepared for cash payments. A journal voucher is indeed used for non-cash transactions like depreciation or rectification of errors. S1 is incorrect, S2 is correct.

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Practice More Accountancy and Book Keeping Questions

Question #1
Blockchain technology in accounting is primarily used for:
A. Immutable and transparent record-keeping
B. Calculating depreciation
C. Preparing tax returns
D. Manual ledger posting

Correct Answer: Option A


Explanation:
Blockchain provides a distributed ledger that is secure, transparent, and tamper-proof.

Question #2
The 'Audit Documentation' should be sufficient to:
A. Enable an experienced auditor, having no previous connection with the audit, to understand the nature, timing, extent of procedures, results, and conclusions
B. Meet legal requirement
C. Only remind the auditor
D. Satisfy management

Correct Answer: Option A


Explanation:
As per SA 230, working papers must stand alone.

Question #3
The policies and procedures adopted by management to assist in achieving orderly and efficient conduct of business is known as:
A. Vouching
B. Continuous Audit
C. Internal Control
D. Statutory Audit

Correct Answer: Option C


Explanation:
Internal control is the system designed by management to safeguard assets, ensure accurate records, and promote operational efficiency.