(vii)

(vii) Loss of goods by fire/theft/spoilage. Test Your Understanding - I Select the Correct Answer (a) When a firm maintains a cash book, it need not maintain ; Journal Proper (ii) Purchases (journal) book (iii) Sales (journal) book (iv) Bank and cash account in the ledger (b) Double column cash book records: All transactions (ii) Cash and bank transactions (iii) Only cash transactions (iv) Only credit transactions (c) Goods purchased on cash are recorded in the : Purchases (journal) book (ii) Sales (journal) book (iii) Cash book (iv) Purchases return (journal)book (d) Cash book does not record transaction of : Cash nature (ii) Credit nature (iii) Cash and credit nature (iv) None of these (e) Total of these transactions is posted in purchase account : Purchase of furniture (ii) Cash and credit purchase (iii) Purchases return (iv) Purchase of stationery (f) The periodic total of sales return journal is posted to : Sales account (ii) Goods account (iii) Purchases return account (iv) Sales return account (g) Credit balance of bank account in cash book shows : Overdraft (ii) Cash deposited in our bank (iii) Cash withdrawn from bank (iv) None of these (h) The periodic total of purchases return journal is posted to : Purchase account (ii) Profit and loss account (iii) Purchase returns account (iv) Furniture account Balancing of account means : Total of debit side (ii) Total of credit side (iii) Difference in total of debit & credit (iv) None of these