Accounting Multiple Choice Question – 11 August 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Accounting

An employee of a music store went to a bank and lodged the previous night’s takings, held overnight in the firm’s safe.

This transaction should be recorded in the store’s Cash Book as……?

Select ONE answer:

    Column to Debit                  Column to Credit

  1.     Cash                                              Bank
  2.     Bank                                             Cash
  3.     Cash                                              Cash
  4.     Bank                                             Bank

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 2

  1. Not correct
  2. Correct – Lodging cash on hand increases the bank balance (thus requiring a debit entry to increase the asset of bank) and reduces the cash balance (thus requiring a credit entry to decrease the asset of cash).
  3. Not correct
  4. Not correct

 

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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