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O Level Accounting (7707)•7707/12/M/J/24
Question 5 from 7707/12/M/J/24

Explanation

Sources for Cash Book Entries

Steps:

  • Recall cash book records cash and bank transactions, with bank column using specific bank-related documents.
  • Identify documents for deposits: paying-in slips confirm amounts paid into bank.
  • Identify documents for withdrawals: cheque counterfoils record cheque details for payments.
  • Cross-check with bank reconciliation: bank statements provide official record of all bank-side transactions.

Why C is correct:

  • Bank statement, cheque counterfoil, and paying-in slip directly supply transaction details for the bank columns of the cash book, as defined in double-entry bookkeeping principles.

Why the others are wrong:

  • A: Invoice records sales/purchases but not bank transactions directly.
  • B: Receipt is a general proof of payment/receipt, not specific to bank entries.
  • D: Petty cash voucher is for small cash expenses, excluding key bank documents like statements.

Final answer: C

Topic: Business documents

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