Interest and Dividends Collected by Bank

Q.

Commission received in advance debit or credit in trial balance is known as

Q.

How does a cash book serve a dual purpose?

Or

Cash book is both a subsidiary book and principal book.

Q. The bank has collected an interest of Rs.600 and has credited in the passbook. TO reconcile, the amount of Rs. will be to the balance of cash book.

1. 600
2. 1, 200
3. added
4. subtracted

Q. The bank has collected a dividend of Rs.500 & also debited Rs.100 in passbook. An amount of shall be to the balance of cash book for reconciling.

1. Rs.600
2. Rs.400
3. added
4. deducted

Q.

Bank has credited an interest of Rs 1, 200 in the pass book & charged a bank charge of Rs 100 for issue of debit card. Which of the following is true in this regard?

1. Rs 1, 100 shall be added to cash book balance

2. Added to pass book balance

3. Rs 1, 200 to be added in cash book balance

4. Rs 1, 100 shall be deducted from cash book overdraft

Q.

There are 2 entries in pass book: one for interest collected on investment by bankers of Rs 500 & the other for bank charges of Rs 100. How much shall be the net effect to the balance as per cash book?

1. Rs 500 shall be added

2. Rs 400 shall be added

3. Rs 600 shall be deducted

4. Rs 400 shall be deducted

Q.

What is meant by capital receipts ?

Q.

A person invested $\$1800$ in an account growing at a rate allowing the money to double every $8$ years.

How much money would be in the account after $12$years, to the nearest dollar?

Q.

The bank collected a note receivable on the behalf of a company amounting to Rs 5, 500 & it includes the interest of Rs 500. Bank also charged a collection fee of Rs 100. What adjustment shall be done in cash book while preparing BRS?

1. Rs 5, 400 shall be added

2. Rs 100 shall be added

3. Rs 5, 500 shall be added

4. Rs 100 shall be deducted

Q.

The balance as per pass book & cash book was Rs 10, 000. The bank has allowed Rs 1, 000 interest on saving account to customer. Because of such interest, pass book balance has become ___ .

1. None of the above

2. Rs 11, 000

3. Rs 12, 000

4. Rs 9, 000

Q.

If The Rent Received In Advance2000 The Adjustment Entry Will Be

Q.

Which of the following is correct in case of interest collected by bank?

1. Subtracted from balance in cash book

2. Added to bank balance

3. None of these

4. Added to balance in cash book

Q. C's Trial Balance contains the following information: Bad debts Rs. 8, 000, Provision for Doubtful debts Rs. 6, 000, Sundry debtors Rs. 25, 000.It is desired to create a provision for bad debts at 10% on Sundry debtors at the end of the year. Sundry debtors (after provision) will appear in Balance Sheet at a figure of :

1. Rs.21, 000
2. Rs.22, 500
3. Rs.18, 000
4. Rs.15, 500

Q. Direct collections by the bank are the balance of cash book at the time of reconciliation.

1. added to
2. deducted from
3. Not adjusted in

Q.

The bank has collected an interest of Rs 600 & has credited the same in the pass book. What shall be the adjustment in the balance as per cash book?

1. Rs 600 shall be added

2. Rs 1, 200 shall be subtracted

3. Rs 1, 200 shall be added

4. Rs 600 shall be subtracted

Q. Select the most appropriate alternatives from those given below :

Additional cash introduced in business is recorded in ________.
a) purchase book
b) cash book
c) journal proper
d) returns inwards book

Q.

Balance as per cash book is less than the balance as per bank pass book by Rs 1, 000. What could be the probable cause of difference?

1. None of the above

2. Interest charged by bank of Rs 1, 000

3. Interest credited by bank of Rs 1, 000

4. Bank charges of Rs 1, 000

Q. Choose the word that is most nearly the opposite in meaning of the word given in capital.
HOARD

1. Deposit
2. Supply
3. Satisfy
4. Accumulate

Q.

Which of the following shall be added in the closing balance of cash book while preparing BRS?
(1). Interest credited in the bank Rs 200
(2). Interest charged by bank Rs 200

1. Only A

2. Only B

3. Both A and B

4. None of the above

Q.

Bank added interest in the bank account will result in bank balance being ___ when compared to cash book balance.

1. None of the above

2. Short

3. Same

4. Excess

Q. The bank has collected an interest of Rs. 600 and has credited in the passbook. To reconcile, the amount of Rs. will be to the balance of cash book.

1. 600
2. 1, 200
3. added
4. subtracted

Q. state the basis of accounting on which receipts and payment account is prepared in case of NPO .