Question

Where all cash receipts are paid into the bank and all payments are made by cheque, the subsidiary book maintained is known as

• A. Subsidiary Cash Register
• B. Petty Cash Book
• C. Bank Book
• D. Goods Inwards Book

Answer 1

Answer:

B. Petty Cash Book

The Petty Cash Book is a subsidiary book used to record small, routine payments such as postage, stationery, conveyance, etc. Even when main receipts and payments are handled through the bank, minor expenses are often managed through petty cash, so a Petty Cash Book is maintained.