JAMB and WAEC Accounts (Principles of Accounts) questions: The cash book and discounts

33 questions with answers and explanations. Tap an option to check yourself.

1. Question 1· The cash book and discounts· WAEC

   A bank overdraft is shown in the cash book as

   • Aa credit balance in the bank column
   • Ba debit balance in the bank column
   • Ca cash receipt
   • Da discount

   Show answer

   Explanation and discussion

2. Question 2· The cash book and discounts· JAMB

   A two-column cash book has columns for

   • Acash and discount
   • Bcash and bank
   • Cbank and discount
   • Ddebtors and creditors

   Show answer

   Explanation and discussion

3. Question 3· The cash book and discounts· JAMB

   When cash is paid into the bank, the entries in a two-column cash book are

   • Adebit both columns
   • Bdebit the cash column, credit the bank column
   • Ccredit the cash column, debit the bank column
   • Dcredit both columns

   Show answer

   Explanation and discussion

4. Question 4· The cash book and discounts· WAEC

   A contra entry in the cash book occurs when

   • Arent is paid
   • Bgoods are sold on credit
   • Ca cheque is received from a debtor only
   • Dcash is paid into the bank

   Show answer

   Explanation and discussion

5. Question 5· The cash book and discounts· JAMB

   A cash book with cash, bank and discount columns is a

   • Atwo-column cash book
   • Bthree-column cash book
   • Cpetty cash book
   • Dsingle-column cash book

   Show answer

   Explanation and discussion

6. Question 6· The cash book and discounts· JAMB

   Cash sales are recorded on the

   • Acredit side of the cash book
   • Bdebit side of the cash book
   • Csales day book
   • Dpurchases book

   Show answer

   Explanation and discussion

7. Question 7· The cash book and discounts· JAMB

   Cash withdrawn from the bank for office use is recorded in the cash book by

   • Adebiting the bank column and crediting the cash column
   • Bdebiting the cash column and crediting the bank column
   • Cdebiting the cash column only
   • Dcrediting both columns

   Show answer

   Explanation and discussion

8. Question 8· The cash book and discounts· WAEC

   A debtor owing ₦2,000 pays by cheque after a 5% cash discount. The amount of the cheque is

   • A₦2,100
   • B₦1,900
   • C₦100
   • D₦2,000

   Show answer

   Explanation and discussion

9. Question 9· The cash book and discounts· WAEC

   Cash withdrawn from the bank for office use is recorded in the cash book as

   • Adebit cash column, credit bank column
   • Bdebit bank column, credit cash column
   • Cdebit cash column, credit cash column
   • Ddebit bank column only

   Show answer

   Explanation and discussion

10. Question 10· The cash book and discounts· JAMB

    In a three-column cash book, the total of the discount column on the debit side is posted to the

    • Adebit of discount allowed account
    • Bcredit of discount received account
    • Ccredit of discount allowed account
    • Ddebit of discount received account

    Show answer

    Explanation and discussion

11. Question 11· The cash book and discounts· JAMB

    A contra entry in the cash book arises when

    • Acash is paid into the bank from the office cash
    • Bgoods are returned to a supplier
    • Ca customer pays by cheque
    • Da cheque is dishonoured

    Show answer

    Explanation and discussion

12. Question 12· The cash book and discounts· WAEC

    Opening cash was ₦20,000. Cash sales were ₦35,000, wages paid in cash ₦12,000 and cash banked ₦25,000. Find the closing cash balance.

    • A₦43,000
    • B₦18,000
    • C₦68,000
    • D₦7,000

    Show answer

    Explanation and discussion

13. Question 13· The cash book and discounts· JAMB

    A three-column cash book has columns for

    • Acash, bank and stock
    • Bdiscount, cash and bank
    • Csales, purchases and returns
    • Dassets, liabilities and capital

    Show answer

    Explanation and discussion

14. Question 14· The cash book and discounts· WAEC

    In a three-column cash book, the discount columns are

    • Amemorandum columns that are not balanced
    • Bbalanced like the cash columns
    • Cused for petty cash
    • Dused for credit sales

    Show answer

    Explanation and discussion

15. Question 15· The cash book and discounts· WAEC

    A credit balance on the bank column of the cash book shows

    • Acash in hand
    • Ba bank overdraft
    • Cmoney in the bank
    • Ddiscount received

    Show answer

    Explanation and discussion

16. Question 16· The cash book and discounts· WAEC

    In a three-column cash book, discount allowed is entered on the

    • Acredit side
    • Bdebit side
    • Cboth sides
    • Dneither side

    Show answer

    Explanation and discussion

17. Question 17· The cash book and discounts· JAMB

    A cheque for ₦20,000 owed by Kola is received less 5% cash discount. How is it recorded in the cash book?

    • A₦19,000 in the bank column and ₦1,000 in the discount column, credit side
    • B₦20,000 in the bank column, credit side
    • C₦19,000 in the bank column and ₦1,000 in the discount column, debit side
    • D₦21,000 in the bank column, debit side

    Show answer

    Explanation and discussion

18. Question 18· The cash book and discounts· JAMB

    Bank charges shown on the bank statement are entered in the cash book on the

    • Acredit side of the bank column
    • Bdebit side
    • Cdiscount column
    • Dcash column debit

    Show answer

    Explanation and discussion

19. Question 19· The cash book and discounts· WAEC

    A trader received ₦19,000 cash from a debtor who owed ₦20,000 and was allowed a discount. The discount allowed is

    • A₦1,000
    • B₦19,000
    • C₦20,000
    • D₦39,000

    Show answer

    Explanation and discussion

20. Question 20· The cash book and discounts· WAEC

    A cash book that records both cash and bank transactions in separate columns is a

    • Apetty cash book
    • Btwo-column cash book
    • Csingle-column cash book
    • Dsales journal

    Show answer

    Explanation and discussion