Dear FAA Aspirants, practice the most important Cash Book MCQs for JKSSB FAA 2026, prepared by Exam Waves according to the new pattern, like statements, reasons, and assertions and matching. These questions will help you understand important Cash Book concepts, check your preparation, and get ready for the exam.
Q1. Which of the following statements correctly describe a Cash Book?
- It is a book in which all cash transactions are recorded.
- Credit transactions are not shown in the Cash Book.
- It also serves as the Cash Account.
- It serves the functions of both a Journal and a Ledger.
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: D
Q2. Consider the following statements regarding the Debit and Credit sides of a Cash Book:
- Cash receipts are recorded on the Debit side.
- Cash payments are recorded on the Credit side.
- Cash received by the business increases the receipts side.
- Cash paid by the business is entered on the payments side.
Which of the statements given above are correct?
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: D
Q3. Which of the following transactions are NOT recorded in a Single Column Cash Book?
- Non-cash transactions
- Cheque received or given
- Cash discount allowed or received
- Cash receipts and cash payments
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: B
Q4. Assertion (A): A Single Column Cash Book provides a complete record of cash receipts and cash payments.
Reason (R): It is used to record all cash transactions of a business in chronological order.
Choose the correct answer:
A) Both A and R are true, and R is the correct explanation of A
B) Both A and R are true, but R is not the correct explanation of A
C) A is true, but R is false
D) A is false, but R is true
Answer: A
Q5. Match List I with List II and select the correct answer:
| List I | List II |
|---|---|
| A. Single Column Cash Book | 1. Cash, Bank and Discount columns |
| B. Double Column Cash Book | 2. Records small expenses |
| C. Triple Column Cash Book | 3. Records cash transactions |
| D. Petty Cash Book | 4. Cash transactions and bank transactions |
A) A-3, B-4, C-1, D-2
B) A-4, B-3, C-2, D-1
C) A-3, B-1, C-4, D-2
D) A-2, B-4, C-1, D-3
Answer: A
Q6. Which of the following statements correctly describe a Double Column Cash Book?
- There are two columns on each side.
- One column records cash transactions.
- The other column records bank transactions.
- It contains separate Cash and Bank columns.
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: D
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Q7. Consider the following statements about a Triple Column Cash Book:
- It involves Cash, Bank and Discount.
- Discount Allowed is recorded on the Debit side.
- Discount Received is recorded on the Credit side.
- It contains more columns than a Double Column Cash Book.
Which of the statements given above are correct?
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: D
Q8. Match the following items with their appropriate treatment or feature:
| List I | List II |
|---|---|
| A. Cash Receipts | 1. Credit side |
| B. Cash Payments | 2. Debit side |
| C. Discount Allowed | 3. Debit side |
| D. Discount Received | 4. Credit side |
A) A-2, B-1, C-3, D-4
B) A-1, B-2, C-4, D-3
C) A-2, B-3, C-1, D-4
D) A-4, B-1, C-3, D-2
Answer: A
Q9. Which of the following statements correctly describe the balancing of a Cash Book?
- The receipts column is always bigger than the payments column.
- The difference is written on the Credit side.
- The difference is written as “By Balance c/d.”
- The balancing difference is placed on the receipts side.
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: B
Q10. Assertion (A): A Petty Cash Book is maintained to record small expenses.
Reason (R): It is maintained by the cashier under the Imprest System and is shown on the asset side of the Balance Sheet.
Choose the correct answer:
A) Both A and R are true, and R is the correct explanation of A
B) Both A and R are true, but R is not the correct explanation of A
C) A is true, but R is false
D) A is false, but R is true
Answer: B
Q11. Consider the following Subsidiary Books and their functions:
- Purchase Book — Records goods purchased on credit for manufacturing or resale.
- Purchase Return Book — Records goods previously purchased on credit and returned to the supplier.
- Sales Book — Records credit sales.
- Sales Return Book — Records goods previously sold on credit and returned by customers.
Which of the above are correctly matched?
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer: D
Q12. Mushtaq purchased goods on credit and later returned some of those goods to the supplier. Which of the following correctly identifies the book in which the return should be recorded and the document prepared for every return?
A) Sales Return Book and Credit Note
B) Purchase Return Book and Debit Note
C) Purchase Book and Credit Note
D) Journal Proper and Debit Note
Answer: B
Q13. Match List I with List II and select the correct combination:
| List I | List II |
|---|---|
| A. Purchase Book | 1. Credit sales |
| B. Purchase Return Book | 2. Goods sold on credit and returned by customers |
| C. Sales Book | 3. Goods purchased on credit for manufacturing or resale |
| D. Sales Return Book | 4. Credit purchases returned to supplier |
A) A-3, B-4, C-1, D-2
B) A-1, B-2, C-3, D-4
C) A-3, B-1, C-4, D-2
D) A-4, B-3, C-1, D-2
Answer: A
Q14. Which of the following transactions or entries are recorded in the Journal Proper?
- Opening entries
- Adjustment entries such as Prepaid Insurance, Rent Outstanding, Depreciation and Commission Received in Advance
- Rectifying entries
- Transfer entries
- Transactions already entered in the subsidiary books
A) 1, 2 and 3 only
B) 1, 2, 3 and 4 only
C) 2, 3, 4 and 5 only
D) 1, 2, 3, 4 and 5
Answer: B
Q15. Consider the following statements relating to Cash Book and Subsidiary Books:
- A Cash Book records cash transactions and also serves as a Cash Account.
- A Single Column Cash Book does not record cheque transactions or cash discounts.
- A Double Column Cash Book has separate columns for Cash and Bank transactions.
- A Triple Column Cash Book involves Cash, Bank and Discount.
- A Purchase Book records credit purchases of goods for manufacturing or resale.
- A Sales Return Book records goods previously sold on credit and returned by customers.
- Journal Proper records opening, adjustment, rectifying and transfer entries.
Which of the statements given above are correct?
A) 1, 2, 3 and 4 only
B) 1, 2, 3, 4 and 5 only
C) 2, 3, 4, 5, 6 and 7 only
D) 1, 2, 3, 4, 5, 6 and 7
Answer: D
