lf a cheque received is further endorsed, it must be entered on both sides of the Cash Book.

True

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False

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Solution

The correct option is A True
True. Cash book is debited when cash comes in and credited when cash goes out. So, when we receive the cheque, cash book is debited. And, when we further endorse the cheque, the cash book is credited. Thus, endoresed cheque appears on both sides of the cash book.

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Similar questions

Q. When a cheque received is endorsed, it must be entered on _____________.

State whether the following statements are TRUE or FALSE :

1. Total of payments side can be greater than total of receipts side in case of bank column.
2. Purchase of asset or stationery on credit is recorded in purchase book.
3. When goods are returned by buyer to seller, buyer sends a debit note.
4. Cheque received and deposited into bank on the same day is a contra entry.
5. Simple petty cash book is not very popular.
6. Interest on overdraft charged by bank is recorded in the cash column.
7. It is not necessary to record dishonor of cheques in the cash book.
8. Cheque book facility is available for fixed deposit account.
9. Businessman generally operates savings bank account.
10. A cash book is both a journal as well as ledger.
11. Cash book is a book of original entry.
12. Cash discount allowed is recorded on the debit side of cash book
13. Credit transactions are never recorded in cash book.
14. Endorsed cheques are always recorded on the payment side in the bank column.
15. A person who endorses the cheque is known as endorser.

Q. Prepare Bank Reconciliation Statement as on 30th September, 2016 from the following particulars:

	₹
(i) Bank Balance as per Pass Book.	10,000
(ii) Cheque deposited into bank but no entry was passed in Cash Book.	500
(iii) Cheque received and entered in Cash Book but not sent to bank.	1,200
(iv) Insurance premium paid directly by the bank.	800
(v) Bank charges entered twice in the Cash Book.	20
(vi) Cheque received entered twice in Cash Book.	1,000
(vii) Bill discounted dishonoured not recorded in the cash book.	5,000

Q. Cash received in entered on the debit side of cash book.

Q. Prepare Bank Reconciliation Statement as on 31st March, 2019 from the following particulars:

		₹
(i)	Bank balance as per Pass Book.	10,000
(ii)	Cheque deposited into the Bank, but no entry was passed in the Cash Book.	500
(iii)	Cheque received and entered in the Cash Book but not sent to bank.	1,200
(iv)	Credit side of the Cash Book bank column cast short.	200
(v)	Insurance premium paid directly by the bank under the standing advice.	600
(vi)	Bank charges entered twice in the Cash Book.	20
(vii)	Cheque issued but not presented to the bank for payment.	500
(viii)	Cheque received entered twice in the Cash Book.	1,000
(ix)	Bill discounted dishonoured not recorded in the Cash Book.	5,000
(x)	Bank had wrongly allowed interest of ₹ 5,000, which was reversed by it on 5th April, 2019.

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lf a cheque received is further endorsed, it must be entered on both sides of the Cash Book.

The correct option is A TrueTrue. Cash book is debited when cash comes in and credited when cash goes out. So, when we receive the cheque, cash book is debited. And, when we further endorse the cheque, the cash book is credited. Thus, endoresed cheque appears on both sides of the cash book.

The correct option is A True
True. Cash book is debited when cash comes in and credited when cash goes out. So, when we receive the cheque, cash book is debited. And, when we further endorse the cheque, the cash book is credited. Thus, endoresed cheque appears on both sides of the cash book.