S1: A triple column cash book has a discount column on both sides. S2: Discount allowed is debited and discount received is credited. Which statement(s) is/are correct? MCQ with Answer and Explanation

S1: A triple column cash book has a discount column on both sides. S2: Discount allowed is debited and discount received is credited. Which statement(s) is/are correct?
A. S2 only
B. Both S1 and S2
C. Neither S1 nor S2
D. S1 only
Answer: Option B
Solution (By JKSSB Mock Tests)
A triple column cash book has cash, bank, and discount columns on both debit and credit sides. Discount allowed (an expense) is recorded on the debit side, and discount received (an income) is recorded on the credit side. Both are correct.

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Practice More Accountancy and Book Keeping Questions

Question #1
Under 'Ind AS 116', a lease is classified as a finance lease if:
A. The lessee has an option to purchase
B. All leases are finance leases
C. The lease term is for more than one year
D. It transfers substantially all the risks and rewards incidental to ownership

Correct Answer: Option B


Explanation:
Under Ind AS 116, there is no classification for lessees; all leases are treated as finance leases (right-of-use asset and lease liability). For lessors, classification remains.

Question #2
Which of the following is an example of a capital receipt?
A. Loan received from bank
B. Sale of old newspapers
C. Rent received
D. Commission received

Correct Answer: Option A


Explanation:
Loan is a capital receipt as it creates a liability. Others are revenue receipts.

Question #3
A Bank Reconciliation Statement is prepared by:
A. Bank
B. Customer (account holder)
C. Auditor of the bank
D. Reserve Bank

Correct Answer: Option B


Explanation:
BRS is prepared by the customer to reconcile differences between his records and bank statement.