NIOS Class 10 Accountancy Chapter 7 Cash Book

NIOS Class 10 Accountancy Chapter 7 Cash Book Solutions to each chapter is provided in the list so that you can easily browse through different chapters NIOS Class 10 Accountancy Chapter 7 Cash Book and select need one. NIOS Class 10 Accountancy Chapter 7 Cash Book Question Answers Download PDF. NIOS Study Material of Class 10 Accountancy Notes Paper 224.

NIOS Class 10 Accountancy Chapter 7 Cash Book

Also, you can read the NIOS book online in these sections Solutions by Expert Teachers as per National Institute of Open Schooling (NIOS) Book guidelines. These solutions are part of NIOS All Subject Solutions. Here we have given NIOS Class 10 Accountancy Chapter 7 Cash Book, NIOS Secondary Course Accountancy Solutions for All Chapters, You can practice these here.

Cash Book

Chapter: 7

Intext Questions 7.1

Fill in the blanks: 

(i) Simple cash book records only cash ______and cash _____.

Ans: Receipts, Payment.

(ii) In a simple cash book all ______ are recorded on the debit side and all _______ are recorded on the credit side. 

Ans: Receipts, Payment.

(iii) The total of _______side of the simple column cash book is generally more than the total of its _____side. 

Ans: Debit, Credit.

(iv) Closing balance of cash book becomes the _______ balance of next period.

Ans: Opening.

Intext Questions 7.2

I. 

Multiple Choice Questions

(i) Simple Cash Book generally shows: 

(a) Debit or Credit balances. 

(b) Credit balance. 

(c) Debit balance.

(d) Both the balances. 

Ans: (c) Debit balance.

(ii) Cash book is a: 

(a) Subsidiary journal. 

(b) Subsidiary journal and ledger. 

(c) Ledger only. 

(d) None of these. 

Ans: (b) Subsidiary journal and ledger.

(iii) Cash sales are recorded in: 

(a) Sales book. 

(b) Cash book. 

(c) Journal. 

(d) None of these. 

Ans: (b) Cash book.

(iv) The Cash Book records: 

(a) All cash receipts & payment. 

(b) Cash and credit sales of goods. 

(c) Only cash receipts. 

(d) None of these.

Ans: (a) All cash receipts & payment.

(v) The balance in the Cash Book is: 

(a) An expense. 

(b) A profit. 

(c) An asset. 

(d) A liability. 

Ans: (c) An asset.

(vi) If Sonu has sold goods for cash, the entry will be recorded: 

(a) In the Cash Book. 

(b) In the Sales Book. 

(c) In the proper Journal. 

(d) None of the above. 

Ans: (a) In the Cash Book.

(vii) Cash Book is a part of: 

(a) Journal. 

(b) Ledger. 

(c) Both Journal & Ledger. 

(d) None of the above.

Ans: (c) both Journal & Ledger.

II. Some transactions are given below. On which side of the Cash Book would you record them? Put the tick mark in the appropriate column.

S.No.	Transactions	Debit side	Credit side
(i)	Mukesh started business with cash
(ii)	Goods purchased for cash
(iii)	Goods sold for cash
(iv)	Closing cash balance
(v)	Cash received from Ankur

Ans: 

S.No.	Transactions	Debit side	Credit side
(i)	Mukesh started business with cash	✔
(ii)	Goods purchased for cash		✔
(iii)	Goods sold for cash	✔
(iv)	Closing cash balance		✔
(v)	Cash received from Ankur	✔

Intext Questions 7.3

Fill in the blanks with suitable word/words: 

(i) In the Bank column cash book , Bank and _________ columns are shown on each side. 

Ans: Cash.

(ii) The Bank column cash book records transactions relating to _______as well as _______. 

Ans: Cash and Bank.

(iii) A separate cash book maintained to record small transactions is called___________.

Ans: Petty Cash Book.

Terminal Exercise

1. What is meant by a Cash Book? Explain the types of Cash Book.

Ans: Cash Book is a book of account maintained for recording transactions involving receipt and payment of cash. It is also one of the books of the original entry. When a cash book is maintained, cash transactions are not recorded in the Journal, and no cash or bank account is required to be maintained in the ledger as Cash Book serves the purpose of Cash Account also.

Cash Books are of the following types: 

(i) Simple Cash Book: This records only cash receipts and cash payments. It has two sides, namely debit and credit. Cash receipts are recorded on the debit side i.e. left hand side and cash payments are recorded on the credit side i.e. right hand side. In a simple cash book there is only one amount column each on its debit side and on the credit side. 

(ii) Bank Column Cash Book: When the number of bank transactions are large in an organisation, it is necessary to have a separate book to record bank transactions. Instead of having a separate book to record Bank transactions, a Bank column is added on each side of the Simple Cash Book. This type of cash book is known as the Bank column Cash Book. 

(iii) Petty Cash Book: A large number of repetitive small payments such as, for conveyance, cartage, postage, telegrams, courier and other expenses are made. These organisations appoint an assistant to the Head Cashier. The appointed assistant is known as a petty cashier. He makes payments of these expenses and maintains a separate cash book to record these transactions. Such a cash book is called Petty Cash Book.

2. What is meant by a ‘Bank Column Cash Book’ ? Draw the format of ‘Bank Column Cash Book’.

Ans: A Bank Column Cash Book is a type of cash book used by businesses to record all transactions related to their bank accounts. It typically consists of multiple columns where different types of transactions are recorded separately. All payments into the Bank are recorded on the debit side and all withdrawals / payments through the Bank are recorded on the credit side of the cash book.

Format of a Bank Column Cash Book

Dr.                                                                                           Cr.

	Receipts					Payments
Date	Particulars	L.F	Cash(Rs.)	Bank(Rs.)	Date	Particulars	L.F	Cash(Rs.)	Bank(Rs.)

3. What do you mean by Petty Cash Book?

Ans: In business organisations, a large number of repetitive small payments such as, for conveyance, cartage, postage, telegrams and other expenses are made. These organisations appoint an assistant to the Head Cashier. The so appointed cashier is known as petty cashier. He makes payment of these expenses and maintains a separate cash book to record these transactions. Such a cash book is called Petty Cash Book.

4. State the meaning of a ‘Contra Entry’ with the help of an example.

Ans: A contra entry refers to a bookkeeping entry that is recorded to offset or reverse an earlier entry in the accounting records. Contra entries are typically used to correct errors, adjust balances, or record transactions between different accounts within the same entity.

For example: let’s say a company mistakenly recorded a payment of Rs.500 for office supplies as an expense, but it should have been recorded as a reduction in accounts payable. To correct this error, the company would make a contra entry by debiting the office supplies expense account and crediting the accounts payable account by Rs.500. This contra entry effectively reverses the original entry, ensuring that the accounts reflect the correct balances.

5. Enter the following transactions in the Simple Cash Book of M/s Ronark Traders:

Date 2012	Details	Amount (Rs.)
Jun 01	Started Business with cash	30,000
Jun 02	Goods purchased for Cash	10,000
Jun 03	Furniture Purchased	1,000
Jun 06	Goods Sold for Cash	7,000
Jun 09	Cartage Paid	200
Jun 10	Postage Paid	100
Jun 12	Cash Sales	3,000
Jun 14	Cash withdrawn for Personal use	2,000
Jun 18	Deposited into Bank	10,000
Jun 22	Goods purchased for Cash	13,000
Jun 25	Wages paid	500
Jun 27	Rent Paid	3,000
Jun 28	Cash Sales	2,000

Ans: