S1: A triple column cash book records cash, bank, and discount transactions. S2: A contra entry in a cash book involves both cash and bank columns. Which statement(s) is/are correct? MCQ with Answer and Explanation

S1: A triple column cash book records cash, bank, and discount transactions. S2: A contra entry in a cash book involves both cash and bank columns. Which statement(s) is/are correct?
A. S1 only
B. Both S1 and S2
C. S2 only
D. Neither S1 nor S2
Answer: Option B
Solution (By JKSSB Mock Tests)
A triple column cash book has columns for cash, bank, and discount on both sides. A contra entry occurs when transactions involve both cash and bank (e.g., cash deposited into bank), affecting both columns.

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Practice More Accountancy and Book Keeping Questions

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The 'Going Concern Concept' implies:
A. The business will be closed within a year
B. The business will continue for the foreseeable future
C. The business will merge with another
D. The business is bankrupt

Correct Answer: Option B


Explanation:
It assumes the entity will continue operations and not liquidate.

Question #2
When analyzing financial statements, the 'Window Dressing' practice refers to:
A. Displaying financial results transparently
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C. Writing off bad debts
D. Manipulating accounts to show a better financial position than reality

Correct Answer: Option D


Explanation:
Window dressing involves accounting tricks (like delaying expense recording) to make financial statements look stronger to investors.

Question #3
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A. Perpetual inventory method
B. Machine hour rate
C. Sum of years' digits
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Correct Answer: Option A


Explanation:
Perpetual inventory method is a method of inventory valuation, not depreciation.