ch-9

Question 1

Define special purpose books/subsidiary books?

Answer 1

Sub-division of the journal into various books recording transactions of similar nature

Question 2

Define cash book

Answer 2

Cash book is a special purpose subsidiary book/journal in which cash receipts and cash payments are recorded

Question 3

What are the different types of cash book. Also define them

Answer 3

Simple cash book-It is a cash book in which only cash transactions are recorded
Double column/2 column cash book :Cash book with bank column-It is a cash book which has 2 columns on each side to record cash receipts and payments and bank transactions.
Petty cash book-It is a cash book in which payments of small amounts are recorded

Question 4

Define cheques in hand

Answer 4

It means cheques that have been received but have not been deposited into bank

Question 5

Define contra entry

Answer 5

It means a transaction involving both cash and bank