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Question
Write the most appropriate word / term / phrase which can substitute each of the following statement:
1. Person who maintains petty cash book.
2. A bank account which the businessman prefers to open.
3. Petty cash book in which the payment side is ruled in suitable columns.
4. Subsidiary book in which only credit purchase of goods is recorded.
5. Subsidiary book in which return of goods sold on credit is recorded.
6. Book in which cash discount received and allowed is recorded.
7. Accounting entries passed in journal proper for correction of mistakes committed in the books of accounts.
8. A note issued by buyer to seller giving full details of goods returned.
9. Note issued by seller on receipt of defective goods from customer.
10. Signing on the back of the cheque to transfer its ownership.
11. An extract of customer’s account maintained by bank.
12. A type of cheque where the holder is paid the amount across the counter of the bank.
13. Bank on whom a cheque is drawn.
14. Excess of bank withdrawal over bank deposits.
15. Document used for depositing cash or cheque into the bank.
1. Person who maintains petty cash book.
2. A bank account which the businessman prefers to open.
3. Petty cash book in which the payment side is ruled in suitable columns.
4. Subsidiary book in which only credit purchase of goods is recorded.
5. Subsidiary book in which return of goods sold on credit is recorded.
6. Book in which cash discount received and allowed is recorded.
7. Accounting entries passed in journal proper for correction of mistakes committed in the books of accounts.
8. A note issued by buyer to seller giving full details of goods returned.
9. Note issued by seller on receipt of defective goods from customer.
10. Signing on the back of the cheque to transfer its ownership.
11. An extract of customer’s account maintained by bank.
12. A type of cheque where the holder is paid the amount across the counter of the bank.
13. Bank on whom a cheque is drawn.
14. Excess of bank withdrawal over bank deposits.
15. Document used for depositing cash or cheque into the bank.
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Solution
(1) Person who maintains petty cash book- Petty Cashier
Explanation:
A petty cashier is the person who is appointed or who is authorised to make payments of petty cash expenses and record them in the Petty Cash Book. Petty cash expenses include small payments, such as postage, conveyance etc. that are very small in amount but occur very frequently in a business.
(2) A bank account which the businessman prefers to open- Current Account
Explanation:
Current A/c is opened by a trader/businessman who has a higher number of regular transactions with a bank. It includes deposits, withdrawals and contra transactions. A bank provides overdraft facility to a trader on the current account. The current account is maintained by a business because a business has various transactions on a daily basis.
(3) Petty cash book in which the payment side is ruled in suitable columns-Analytical Petty Cash Book
Explanation:
In this type of Petty Cash Book, on the payment (credit) side, a separate column is provided for each class of common expenses. The number of columns depends on the nature of business and type of expenses. A small business will need lesser columns and a large business needs more columns. Expenses that cannot be designated to any class of expenses are entered in the column named sundry expenses.
(4) Subsidiary book in which only credit purchase of goods is recorded- Purchase Book
Explanation:
All credit purchases of goods are recorded in the Purchases Book. Only credit purchases of goods are recorded in the Purchases Book and not the cash purchases. Goods mean those things that are purchased or produced for resale in a business. Any purchase of assets is not recorded in the Purchases Book. For example, if a business deals in cloth, credit purchase of cloth will be recorded in the Purchases Book, but purchase of furniture, which is an asset, will not be recorded in the Purchases Book.
(5) Subsidiary book in which return of goods sold on credit is recorded- Sales Return Book
Explanation:
Sales Return Book is the subsidiary book in which the return of goods sold on credit is recorded. It is also known as the Returns Inward Book. When goods are returned, a credit note is prepared and sent to the party who returned the goods. The party’s account is credited with the amount mentioned in the credit note. Thus, return of goods sold on credit is recorded in the Sales Return Book.
(6) Book in which cash discount received and allowed is recorded- Journal Proper
Explanation:
When the Journal is sub-divided into various subsidiary books, such as Sales Book, Purchases Book etc., the Journal becomes the residuary book in which only those transactions are recorded that cannot be recorded in any other subsidiary book. This type of Journal is called Journal Proper. The following types of entries are recorded in Journal Proper:
a. Opening entry
b. Closing entry
c. Transfer entries
d. Rectification entries
e. Adjustment entries
f. Miscellaneous entries such as discount received, bad debts written off etc.
Thus, cash discount received or allowed is recorded in the Journal Proper.
(7) Accounting entries passed in journal proper for correction of mistakes committed in the books of accounts- Rectified entries
Explanation:
Rectification entries are recorded in the Journal Proper in order to rectify the errors committed at the time of journalising, posting, totaling, balancing etc.
(8) A note issued by buyer to seller giving full details of goods returned- Debit Note
Explanation:
Debit note is the note that is issued to the seller by the buyer giving the details of goods returned and the amount by which his/her account is debited in the books of the firm. When goods are returned to a supplier, the debit note is prepared and sent to the supplier with the returned goods. It is a source document that contains the date of transaction, the name of account which is debited, the amount and reasons for debit.
(9) Note issued by seller on receipt of defective goods from customer- Credit note
Explanation:
A credit note is prepared by a seller when defective goods are returned by a customer. This note is prepared and sent to the customer indicating that his/her account has been credited in firm’s books. A duplicate copy of the credit note is retained and used as a source document for recording the transactions in the books of accounts.
(10) Signing on the back of the cheque to transfer its ownership- Endorsement
Explanation:
Endorsement is the mode of negotiating a negotiable instrument such as a cheque. Signing on the back of the cheque means transferring the ownership in favour of a third party. It is called endorsement and the person who is endorsing the cheque is known as endorser. Sometimes, the holder of the bill may transfer the cheque in favour of the creditor to settle his/her debt.
(11) An extract of customer’s account maintained by bank- Pass Book
Explanation:
A Pass Book is the copy of the ledger account maintained by a bank in order to record the banking transactions of the business. It is provided on a periodic basis to a customer in order to inform him/her about the transactions and balances of the accounts. It is the extract of the customer’s account maintained by the bank.
(12) A type of cheque where the holder is paid the amount across the counter of the bank- Bearer Cheque
Explanation:
A cheque that is payable across the counter of a bank is known as bearer cheque. It is called 'bearer' because it is payable to the holder of the cheque, i.e. the person who is holding the cheque and presents it for payment to the bank for encashment is entitled to receive the payment.
(13) Bank on whom a cheque is drawn- Drawee
Explanation:
The drawer of a cheque draws a cheque on the bank, in which he/she has an account, in order to make the payment to the payee. The bank on which the cheque is drawn is known as drawee.
(14) Excess of bank withdrawal over bank deposits- Overdraft
Explanation:
When the withdrawal amount exceeds the deposit amount made in a bank, it is termed as overdraft. An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation, the account is said to be "overdrawn". This facility is provided by a bank to the holder of a current account.
(15) Document used for depositing cash or cheque into the bank- Pay-in-Slip
Explanation:
A pay-in-slip is the source document that is used to deposit cash or cheque in a bank. It is a form available that has a counterfoil, which is returned to the depositor after being duly stamped and signed by the cashier of the bank. The counterfoil returned to the depositor is known as 'receipt' and it acts as evidence for the amount deposited in the account.
(1) Person who maintains petty cash book- Petty Cashier
Explanation:
A petty cashier is the person who is appointed or who is authorised to make payments of petty cash expenses and record them in the Petty Cash Book. Petty cash expenses include small payments, such as postage, conveyance etc. that are very small in amount but occur very frequently in a business.
A petty cashier is the person who is appointed or who is authorised to make payments of petty cash expenses and record them in the Petty Cash Book. Petty cash expenses include small payments, such as postage, conveyance etc. that are very small in amount but occur very frequently in a business.
(2) A bank account which the businessman prefers to open- Current Account
Explanation:
Current A/c is opened by a trader/businessman who has a higher number of regular transactions with a bank. It includes deposits, withdrawals and contra transactions. A bank provides overdraft facility to a trader on the current account. The current account is maintained by a business because a business has various transactions on a daily basis.
Current A/c is opened by a trader/businessman who has a higher number of regular transactions with a bank. It includes deposits, withdrawals and contra transactions. A bank provides overdraft facility to a trader on the current account. The current account is maintained by a business because a business has various transactions on a daily basis.
(3) Petty cash book in which the payment side is ruled in suitable columns-Analytical Petty Cash Book
Explanation:
In this type of Petty Cash Book, on the payment (credit) side, a separate column is provided for each class of common expenses. The number of columns depends on the nature of business and type of expenses. A small business will need lesser columns and a large business needs more columns. Expenses that cannot be designated to any class of expenses are entered in the column named sundry expenses.
In this type of Petty Cash Book, on the payment (credit) side, a separate column is provided for each class of common expenses. The number of columns depends on the nature of business and type of expenses. A small business will need lesser columns and a large business needs more columns. Expenses that cannot be designated to any class of expenses are entered in the column named sundry expenses.
(4) Subsidiary book in which only credit purchase of goods is recorded- Purchase Book
Explanation:
All credit purchases of goods are recorded in the Purchases Book. Only credit purchases of goods are recorded in the Purchases Book and not the cash purchases. Goods mean those things that are purchased or produced for resale in a business. Any purchase of assets is not recorded in the Purchases Book. For example, if a business deals in cloth, credit purchase of cloth will be recorded in the Purchases Book, but purchase of furniture, which is an asset, will not be recorded in the Purchases Book.
All credit purchases of goods are recorded in the Purchases Book. Only credit purchases of goods are recorded in the Purchases Book and not the cash purchases. Goods mean those things that are purchased or produced for resale in a business. Any purchase of assets is not recorded in the Purchases Book. For example, if a business deals in cloth, credit purchase of cloth will be recorded in the Purchases Book, but purchase of furniture, which is an asset, will not be recorded in the Purchases Book.
(5) Subsidiary book in which return of goods sold on credit is recorded- Sales Return Book
Explanation:
Sales Return Book is the subsidiary book in which the return of goods sold on credit is recorded. It is also known as the Returns Inward Book. When goods are returned, a credit note is prepared and sent to the party who returned the goods. The party’s account is credited with the amount mentioned in the credit note. Thus, return of goods sold on credit is recorded in the Sales Return Book.
Sales Return Book is the subsidiary book in which the return of goods sold on credit is recorded. It is also known as the Returns Inward Book. When goods are returned, a credit note is prepared and sent to the party who returned the goods. The party’s account is credited with the amount mentioned in the credit note. Thus, return of goods sold on credit is recorded in the Sales Return Book.
(6) Book in which cash discount received and allowed is recorded- Journal Proper
Explanation:
When the Journal is sub-divided into various subsidiary books, such as Sales Book, Purchases Book etc., the Journal becomes the residuary book in which only those transactions are recorded that cannot be recorded in any other subsidiary book. This type of Journal is called Journal Proper. The following types of entries are recorded in Journal Proper:
When the Journal is sub-divided into various subsidiary books, such as Sales Book, Purchases Book etc., the Journal becomes the residuary book in which only those transactions are recorded that cannot be recorded in any other subsidiary book. This type of Journal is called Journal Proper. The following types of entries are recorded in Journal Proper:
a. Opening entry
b. Closing entry
c. Transfer entries
d. Rectification entries
e. Adjustment entries
f. Miscellaneous entries such as discount received, bad debts written off etc.
b. Closing entry
c. Transfer entries
d. Rectification entries
e. Adjustment entries
f. Miscellaneous entries such as discount received, bad debts written off etc.
Thus, cash discount received or allowed is recorded in the Journal Proper.
(7) Accounting entries passed in journal proper for correction of mistakes committed in the books of accounts- Rectified entries
Explanation:
Rectification entries are recorded in the Journal Proper in order to rectify the errors committed at the time of journalising, posting, totaling, balancing etc.
Rectification entries are recorded in the Journal Proper in order to rectify the errors committed at the time of journalising, posting, totaling, balancing etc.
(8) A note issued by buyer to seller giving full details of goods returned- Debit Note
Explanation:
Debit note is the note that is issued to the seller by the buyer giving the details of goods returned and the amount by which his/her account is debited in the books of the firm. When goods are returned to a supplier, the debit note is prepared and sent to the supplier with the returned goods. It is a source document that contains the date of transaction, the name of account which is debited, the amount and reasons for debit.
Debit note is the note that is issued to the seller by the buyer giving the details of goods returned and the amount by which his/her account is debited in the books of the firm. When goods are returned to a supplier, the debit note is prepared and sent to the supplier with the returned goods. It is a source document that contains the date of transaction, the name of account which is debited, the amount and reasons for debit.
(9) Note issued by seller on receipt of defective goods from customer- Credit note
Explanation:
A credit note is prepared by a seller when defective goods are returned by a customer. This note is prepared and sent to the customer indicating that his/her account has been credited in firm’s books. A duplicate copy of the credit note is retained and used as a source document for recording the transactions in the books of accounts.
A credit note is prepared by a seller when defective goods are returned by a customer. This note is prepared and sent to the customer indicating that his/her account has been credited in firm’s books. A duplicate copy of the credit note is retained and used as a source document for recording the transactions in the books of accounts.
(10) Signing on the back of the cheque to transfer its ownership- Endorsement
Explanation:
Endorsement is the mode of negotiating a negotiable instrument such as a cheque. Signing on the back of the cheque means transferring the ownership in favour of a third party. It is called endorsement and the person who is endorsing the cheque is known as endorser. Sometimes, the holder of the bill may transfer the cheque in favour of the creditor to settle his/her debt.
Endorsement is the mode of negotiating a negotiable instrument such as a cheque. Signing on the back of the cheque means transferring the ownership in favour of a third party. It is called endorsement and the person who is endorsing the cheque is known as endorser. Sometimes, the holder of the bill may transfer the cheque in favour of the creditor to settle his/her debt.
(11) An extract of customer’s account maintained by bank- Pass Book
Explanation:
A Pass Book is the copy of the ledger account maintained by a bank in order to record the banking transactions of the business. It is provided on a periodic basis to a customer in order to inform him/her about the transactions and balances of the accounts. It is the extract of the customer’s account maintained by the bank.
A Pass Book is the copy of the ledger account maintained by a bank in order to record the banking transactions of the business. It is provided on a periodic basis to a customer in order to inform him/her about the transactions and balances of the accounts. It is the extract of the customer’s account maintained by the bank.
(12) A type of cheque where the holder is paid the amount across the counter of the bank- Bearer Cheque
Explanation:
A cheque that is payable across the counter of a bank is known as bearer cheque. It is called 'bearer' because it is payable to the holder of the cheque, i.e. the person who is holding the cheque and presents it for payment to the bank for encashment is entitled to receive the payment.
A cheque that is payable across the counter of a bank is known as bearer cheque. It is called 'bearer' because it is payable to the holder of the cheque, i.e. the person who is holding the cheque and presents it for payment to the bank for encashment is entitled to receive the payment.
(13) Bank on whom a cheque is drawn- Drawee
Explanation:
The drawer of a cheque draws a cheque on the bank, in which he/she has an account, in order to make the payment to the payee. The bank on which the cheque is drawn is known as drawee.
The drawer of a cheque draws a cheque on the bank, in which he/she has an account, in order to make the payment to the payee. The bank on which the cheque is drawn is known as drawee.
(14) Excess of bank withdrawal over bank deposits- Overdraft
Explanation:
When the withdrawal amount exceeds the deposit amount made in a bank, it is termed as overdraft. An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation, the account is said to be "overdrawn". This facility is provided by a bank to the holder of a current account.
When the withdrawal amount exceeds the deposit amount made in a bank, it is termed as overdraft. An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation, the account is said to be "overdrawn". This facility is provided by a bank to the holder of a current account.
(15) Document used for depositing cash or cheque into the bank- Pay-in-Slip
Explanation:
A pay-in-slip is the source document that is used to deposit cash or cheque in a bank. It is a form available that has a counterfoil, which is returned to the depositor after being duly stamped and signed by the cashier of the bank. The counterfoil returned to the depositor is known as 'receipt' and it acts as evidence for the amount deposited in the account.
A pay-in-slip is the source document that is used to deposit cash or cheque in a bank. It is a form available that has a counterfoil, which is returned to the depositor after being duly stamped and signed by the cashier of the bank. The counterfoil returned to the depositor is known as 'receipt' and it acts as evidence for the amount deposited in the account.
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