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Question
When a petty cash book is kept there will be.
When a petty cash book is kept there will be.
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Solution
(A) No entries were made at all in the general ledger for items paid by petty cash.
(B) The same number of entries in the general ledger.
(C) Fewer entries were made in the general ledger.
(D) More entries are made in the general ledger.
Answer: (B) The same number of entries are made in the general ledger.
Explanation: Every transaction in the petty cash book of debit or credit will have a respective entry in the general ledger of debit or credit balance. Mostly, the transaction of petty cash is debited while crediting the cash account or the respective account.
Also see:
(A) No entries were made at all in the general ledger for items paid by petty cash.
(B) The same number of entries in the general ledger.
(C) Fewer entries were made in the general ledger.
(D) More entries are made in the general ledger.
Answer: (B) The same number of entries are made in the general ledger.
Explanation: Every transaction in the petty cash book of debit or credit will have a respective entry in the general ledger of debit or credit balance. Mostly, the transaction of petty cash is debited while crediting the cash account or the respective account.
Also see:
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