Maintenance of cash, subsidiary book and ledger
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.
One-liners from this chapter
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What is a Cash Book in banking accounting?
A Cash Book is a subsidiary book that records all cash receipts and cash payments. It serves the dual purpose of a journal and a ledger for cash transactions.
What is the primary purpose of maintaining a Cash Book in a bank branch?
To record all cash and bank transactions daily
How does a Double Column Cash Book differ from a Single Column Cash Book?
A Double Column Cash Book has two amount columns on each side — one for cash and one for bank transactions — while a Single Column Cash Book records only cash transactions.
Which column of a Double Column Cash Book records transactions through the bank?
The Bank column records all bank transactions
What is the purpose of a Petty Cash Book?
A Petty Cash Book records small, routine cash expenses (postage, stationery, conveyance) that are too minor to enter in the main Cash Book. It is maintained by a petty cashier under the imprest system.
What type of entries appear on both debit and credit sides of the Cash Book simultaneously?
Contra entries appear on both sides simultaneously
What is the Imprest System of petty cash?
Under the Imprest System, the petty cashier is given a fixed sum (imprest amount) at the start of a period; at the end, the exact amount spent is reimbursed, restoring the fund to the original imprest level.
What does a credit balance in the Cash column of a Cash Book indicate?
It indicates an error as cash cannot have credit balance
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