Objective Type Questions
Answer in one sentence the following questions.
1. State the meaning of a voucher.
2. Why is a petty cash voucher prepared?
3. What do you mean by Receipt?
4. Define the term ‘Cheque’.
5. State the meaning of ‘Pay-in-slip.’
6. State the meaning of a crossed cheque.
7. What do you mean by a bank pass book?
8. Write the meaning of a Debit note.
9. Write the meaning of a Credit note.
10 What do you mean by a Cash Memo?
Objective Type Questions
Answer in one sentence the following questions.
1. State the meaning of a voucher.
2. Why is a petty cash voucher prepared?
3. What do you mean by Receipt?
4. Define the term ‘Cheque’.
5. State the meaning of ‘Pay-in-slip.’
6. State the meaning of a crossed cheque.
7. What do you mean by a bank pass book?
8. Write the meaning of a Debit note.
9. Write the meaning of a Credit note.
10 What do you mean by a Cash Memo?
(1) A voucher is a written document that provides evidence of any business transaction. It is a source document that is used as evidence for recording transactions in the primary books of business, i.e. Journal or other Subsidiary Books. Vouchers are of two types: source voucher and accounting voucher. Accounting Vouchers are further classified as cash and non-cash vouchers.
(2) A petty cash voucher is a document that is used to write down or record petty cash payments and it also supports payments of small amounts to employees in an organisation or business under a petty cash system.
(3) When a trader receives cash from a customer, a receipt is issued to him/her containing the date, amount and name of the customer. It acts as a proof in the hands of a customer that the payment is made to the seller of goods with the amount specified in the receipt.
(4) A cheque is a document drawn by a banker in writing and is payable on demand. The name of the person to whom the payment is to be made is legibly written on the cheque, along with the amount to be paid in words as well as numerals.
(5) A pay-in-slip is a form that is used to deposit money in a bank. It contains a counterfoil that is returned to the depositor after it is duly stamped and signed by the cashier. This slip acts as a receipt contains the details of the date and amount deposited either through cash or cheque.
(6) Crossing a cheque means drawing two parallel lines on the face of the cheque with or without additional words like "& CO." or "Account Payee" or "Not Negotiable". A crossed cheque cannot be en-cashed at the cash counter of a bank. Instead it can only be credited to the Payee's Account.
(7) A bank pass book is a copy of the ledger account maintained by a bank to record the transactions of its clients. Each customer is issued a separate passbook by the bank. It is the copy of the ledger account provided periodically to the customer in order to inform him/her about the transactions and the balance in his/her account.
(8) A debit note is a source document that is prepared when goods are returned to a supplier. It contains the name of the party (supplier) whose account has been debited, along with the amount and details of the bill and the reason for the debit, in reference to which his account has been debited.
(9) When goods are returned by a customer, a credit note is sent to the customer, indicating that his/her account has been credited in our books. A duplicate copy is retained with the supplier. It is also issued when any further discount is allowed to the customer.
(10) Whenever goods are sold in cash, a seller prepares a cash memo and records therein details of the goods sold. This memo includes quantity, rate and total amount of goods sold, along with the date of transaction. All cash transactions are recorded in the books of accounts on the basis of the cash memos. A cash memo is prepared when goods are sold for cash. It includes all the details of the goods sold, i.e. quantity, rate and total amount of goods sold, along with the date of transaction. Thus, a cash memo is given by a trader in the case of sale and it is received in the case of purchases.
(1) A voucher is a written document that provides evidence of any business transaction. It is a source document that is used as evidence for recording transactions in the primary books of business, i.e. Journal or other Subsidiary Books. Vouchers are of two types: source voucher and accounting voucher. Accounting Vouchers are further classified as cash and non-cash vouchers.
(2) A petty cash voucher is a document that is used to write down or record petty cash payments and it also supports payments of small amounts to employees in an organisation or business under a petty cash system.
(3) When a trader receives cash from a customer, a receipt is issued to him/her containing the date, amount and name of the customer. It acts as a proof in the hands of a customer that the payment is made to the seller of goods with the amount specified in the receipt.
(4) A cheque is a document drawn by a banker in writing and is payable on demand. The name of the person to whom the payment is to be made is legibly written on the cheque, along with the amount to be paid in words as well as numerals.
(5) A pay-in-slip is a form that is used to deposit money in a bank. It contains a counterfoil that is returned to the depositor after it is duly stamped and signed by the cashier. This slip acts as a receipt contains the details of the date and amount deposited either through cash or cheque.
(6) Crossing a cheque means drawing two parallel lines on the face of the cheque with or without additional words like "& CO." or "Account Payee" or "Not Negotiable". A crossed cheque cannot be en-cashed at the cash counter of a bank. Instead it can only be credited to the Payee's Account.
(7) A bank pass book is a copy of the ledger account maintained by a bank to record the transactions of its clients. Each customer is issued a separate passbook by the bank. It is the copy of the ledger account provided periodically to the customer in order to inform him/her about the transactions and the balance in his/her account.
(8) A debit note is a source document that is prepared when goods are returned to a supplier. It contains the name of the party (supplier) whose account has been debited, along with the amount and details of the bill and the reason for the debit, in reference to which his account has been debited.
(9) When goods are returned by a customer, a credit note is sent to the customer, indicating that his/her account has been credited in our books. A duplicate copy is retained with the supplier. It is also issued when any further discount is allowed to the customer.
(10) Whenever goods are sold in cash, a seller prepares a cash memo and records therein details of the goods sold. This memo includes quantity, rate and total amount of goods sold, along with the date of transaction. All cash transactions are recorded in the books of accounts on the basis of the cash memos. A cash memo is prepared when goods are sold for cash. It includes all the details of the goods sold, i.e. quantity, rate and total amount of goods sold, along with the date of transaction. Thus, a cash memo is given by a trader in the case of sale and it is received in the case of purchases.
