CHAPTER 5: CASH | NCERTBOOKSPDF.COM

MULTIPLE CHOICE QUESTIONS FOR CPWD AND FOREST ACCOUNT FOR PC 16 SAS SUBORDINATE AUDIT SERVICES.

Part of cash includes
(i) Legal tender coin (ii) Legal tender notes
(iii) Cheque/draft towards departmental dues (iv) Deposit at call receipt of Sch
Bank
(v) Rs. 1 Revenue Stamp (vi) Rs. 5 Revenue stamp
(a) i, ii,, iii (b) i, ii, iii, iv
(c) All except vi (d) All of the above
Answer
Answer: C
Which of the following is/are not part of cash
(a) Cheque for refund of advance
(b) Cheque deposited by contractor
(c) Personal cheque of DDO (d) All of the above
Answer
Answer: C
Which of the following is/are not part of cash
(a) Government Securities (b) Deposit receipt
(c) Debenture of Govt. (d) Bond as security deposit
(e) Service Postage Stamp (f) All of the above
Answer
Answer: D
Any person paying money into accredited bank to the credit of Public Works Division shall present it with
(a) Memorandum or challan in CPWA Form 7
(b) Paying slip
(c) Deposit Slip (d) Bank Scroll
Answer
Answer: A
State whether true or false
The first (interim) LoC to be opened in the favour of Cheque drawing & disbursing officer at the end of the current financial year
(a) True (b) False
Answer
Answer: B (in the beginning of the FY)
Maximum number of LoC issued in a year is
(a) Three (b) Four
(c) Five (d) Six
Answer
Answer: C
Head of Department will make distribution of allotment amongst DDOs under his control under intimation to
(a) Head of the Office (b) Pay & Accounts Officer
(c) Accredited Bank (d) Central Bank, RBI at Nagpur
Answer
Answer: B
Pick the incorrect one regarding date of issue of LoC
(i) First : Beginning of the F.Year
(ii) Second : By 30th June
(iii) Third : By September
(iv) Fourth : By January
(v) Fifth (last) : By 10th March
(a) i and v (b) ii and iii
(c) ii, iii and v (d) iii, iv and v
Answer
Answer: C (2nd-by 10th June, 3rd-by Oct, 5th-by 15th
Maximum percentage of budget grant allotted shall be issued from April to September
(a) 50 (b) 70
(c) 80 (d) 80
Answer
Answer: C
Proposal for the third LoC along with reconciliation statement upto the end of August shall be submitted by
(a) 31st August (b) 10th September
(c) 15th September (d) 18h Septmeber
Answer
Answer: C
No LoC for the financial year shall be issued by the LoC Cell after
(a) 15th February (b) Last working day of February
(c) 10th March (d) 15th March
Answer
Answer: D
The fifth and final LOC will be issued on 15th of March indicating final adjustment for which demand should be received by 10th March for the Division located at New Delhi and for outstation Divisions by
(a) 1st March (b) 3rd March
(c) 5th March (d) 7th March
Answer
Answer: C
Who is responsible to ensure that at no time the amount assigned in the letter of credit is exceeded by the payment of any
(a) DDO (b) Officer executing the work
(c) Divisional Accountant (d) Paying Bank Branch
Answer
Answer: D
The cheque (s) actually issued during the last LoC but presented for payment during the first LoC of current financial year will be taken by the bank against the assignment of the year
(a) in which they are paid (b) in which they were drawn
(c) As indicated by the Divisional Officer (d) As decided by paying branch
Answer
Answer: B
Regarding payment by Divisional Officer, please pick the correct ones
(i) Advances from Provident Fund for all categories;
(ii) Withdrawal from General Provident Fund and final withdrawal of accumulations in the Fund from Group ‘D’ employees;
(iii) Payments arising under the Deposit Linked Insurance Scheme to Group ‘D’ employees
(iv) All short term loans and advances to Government servants recoverable in less than 84 instalments
(v) Withdrawals from provident fund in respect of Government servants other than Group ‘D’ will be paid by Zonal Pay & Accounts
(a) i, ii and iii (b) i, ii, iii and iv
(c) i, ii , iii and v (d) All of the above
Answer
Answer: C (less than 70 installments)
Generally a cheque should not be issued for an amount less than
(a) Rs. 10 (b) Rs. 25
(c) Rs. 100 (d) Rs. 500
Answer
Answer: A
All cheques in the Divisional office shall bear two signature if the amount of the cheque is
(a) Rs. 1 lakh or more (b) More than Rs. 1 lakh
(c) Rs. 10 lakh or more (b) More than Rs. 10 lakh
Answer
Answer: C
Validity of cheque is
(a) Three months from date of issue
(b) Three months after the month of issue
(a) Six months from date of issue
(b) Six months after the month of issue
Answer
Answer: A
State whether true or false
Where a cheque should bear two signature, the second signatory must be the Divisional Accountant
(a) True (b) False
Answer
Answer: B
The competent authority to nominate an officer other than Divisional Accountant as second signatory for cheque
(a) Pay & Accounts Officer (b) Superintendent Engineer
(c) Controller General of Accounts
(d) None as DA alone will second signatory.
Answer
Answer: C
Period for which cheque from date/month of its issue remains unpaid and not surrendered for renewal/cancellation, should be cancelled
(a) Three months (b) Six months
(c) One year (d) Two years
Answer
Answer: B
State whether true or false
If a cheque is not presented to bank for payment within its currency and surrendered to Divisional Officer within 12 months from the date of issue, it shall be revalidated by DO as special case
(a) True (b) False
Answer
Answer: B
In cases where a cheque is issued and withdrawn i.e. a fresh cheque is not required to be issued, the cheque should be defaced and forwarded to
(a) Head of Department
(b) Accounts Branch of the division
(c) Pay & Accounts Officer (d) Chief Accounting Authority
Answer
Answer: C
When money is received by a Government Officer on behalf of Government, it should be brought to account in the Cash Book
(a) At once
(b) Whenever money becomes due
(c) After realisation in bank scroll (d) At the end of the month
Answer
Answer: A
Receipt of money towards government dues shall be granted in
(a) CPWA Form 2 (b) CPWA Form 3
(c) CPWA Form 4 (d) CPWA Form 5
Answer
Answer: B
Final acquittance for private cheque & draft should be given
(a) At once
(b) Whenever money becomes due
(c) After clearance (d) At the end of the month
Answer
Answer: C
Pick the correct one
(a) Before an officer signs a receipt in CPWA Form 3 or a Cash Memo, in Form 3- A for cash actually received by him, he should see that the receipt of the money has been duly recorded in his cash book, and in token of this check the entry in the cash book should be initialled and dated at the same time.
(b) At the end of the day the officer issuing receipt in CPWA Form 3 or a Cash Memo, in Form 3- A should enter the amount in cash book and balance it
(c) Both
(d) None
Answer
Answer: A (same day and not same month)
State whether true or false
Earnest money in legal tender notes and Deposit-at-call receipts of Scheduled Banks attached to tenders and returned to the contractors whose tenders are rejected in the same month in which the tenders are opened by the Divisional Officer, need not pass through the divisional accounts subject to other conditions.
(a) True (b) False
Answer
Answer: B
Pick the correct ones
(i) Cheques of private individuals if accepted in payment of Government dues should be treated as cash
(ii) When they are sent to the Bank for encashment, their classification should be shown in the disbursement column as relevant major head.
(iii) the transactions of receipts of private cheques are frequent and numerous the cheques may be initially entered in a “Register of cheques received and adjusted” in Form No. C.P.W.A. 1-A and only the daily totals of receipts and remittances entered in the Cash Book.
(iv) The above procedure will not apply in respect of Deposit-in-Call receipts of Scheduled Banks.
(a) i and ii (b) i & iii
(c) i, ii and iii (d) All of the above
Answer
Answer: B ii-remittance to bank in place of classification
When Cheques accepted from private individuals are dishonoured on presentation to the banks, the cash book should be adjusted
(a) By minus entry in debit side (b) By minus entry in credit side
(c) By minus entries on both side (d) By debit entry in credit side
Answer
Answer: C
Pick the correct ones
(a) The Government Officer who is not in-charge of a cash book receives money on behalf of Government at exceptional times, he should not mix it up with the imprest or any other cash in his charge.
(b) He should pay or remit it at the earliest opportunity, to the nearest officer having a cash book or deposit into accredited Bank accompanied by a challan in duplicate
(c) The acknowledgement of the Bank should be forwarded immediately to the next superior officer having a cash book.
(d) The record of the transaction will be in the correspondence and not in the imprest account of receiving officer.
(a) i, ii and iii (b) i, iii and iv
(c) I, ii and iv (d) All of the above
Answer
Answer: D
State whether true or false
Divisional Officer may make use of departmental cash receipts temporally for current expenditure
(a) True (b) False
Answer
Answer: A
If the DO utilizes departmental cash receipt he must send a cheque to the bank for the amounts so utilised before
(a) end of the next working day (b) end of the month
(c) making transfer entry
(d) submission of accounts to PAO
Answer
Answer: B
Cheque sent to bank towards adjustment of utilization of departmental cash receipts is endorsed with
(a) Received payment from departmental cash (b) Received cash towards debit to PWD
(c) Received payment by transfer credit to PWD
(d) Remittance to bank
Answer
Answer: C
State whether true or false
When the payee signs in an Indian script, he should be required to note the amount acknowledged in the script in the Hindi numerals in his own handwriting.
(a) True (b) False
Answer
Answer: B (International not Hindi numeral)
Pick the correct ones
(i) Until the acknowledgement of the payment, with all necessary particulars, has been given by payee it is open to disbursing officer to decline to hand him the cheque or cash, or to make a remittance to him
(ii) In cases of remittance by postal money order, the purpose of the remittance should be briefly stated in the acknowledgement portion thereof.
(iii) In the case of article received by value payable post, the value payable cover together with the invoice or bill showing the details of the items paid for may be accepted as a voucher. The disbursing officer should endorse, a note on the cover to the effect that the payment was made through the post office and this will also cover charges for the money order commission.
(iv) A certified copy (marked Duplicate) of a receipted voucher may be retained by the disbursing officer, should this be necessary to complete the record of his office and the payee should be required to sign such a copy or give a duplicate acknowledgement of the payment.
(a) i, ii and iii (b) i, ii and iv
(c) I, iii and iv (d) All of the above
Answer
Answer: C (payee not required to sign duplicate copy)
The Officer in charge of a cash book should he should enter all his remittances, including cheques / drafts to the accredited Bank as they are made in
(a) CPWA Form 4 (b) CPWA Form 5
(c) CPWA Form 6 (d) CPWA Form 7
Answer
Answer: A
Cash book and Imprest cash accounts are maintained respectively in
(a) CPWA Form 1 & IA (b) CPWA Form 1 and 2
(c) CPWA Form 2 & 2A (d) CPWA Form 1 and 2A
Answer
Answer: B
Pick the correct ones
(i) In case of bills of staff desiring payment by cash, the cheques should be drawn by Divisional Officer or Departmental Accounts Officers declared as
Cheque Drawing Divisional Officer by their designation
(ii) The amount of each bill should be entered on the payment side in the Column “Bank” and the amount of deduction should be simultaneously be entered on payment side under column “Cash” and on receipt side under column “Amount (Cash)”.
(iii) The payment on payment side should be classified under the appropriate head of accounts. The recoveries on the receipts side should be classified under the respective Major and Minor heads.
(iv) The amount of these cheques should be simultaneously entered in the Subsidiary Cash Book maintained in Form G.A.R 3.
(a) i, ii and iii (b) ii, iii and iv
(c) I, iii and iv (d) All of the above
Answer
Answer: D
Pick the incorrect ones
(a) The cash book must be balanced on the date prescribed for closing the cash accounts of the month.
(b) When the transactions are numerous, a weekly or daily balance is recommended.
(c) Cash be counted whenever a balance is struck, or at convenient intervals. The results of such intermediate counting should be recorded in the form of a note in the body of the cash book (Column 10).
(d) The actual balance of cash in the chest should invariably be stated in the note both in words and figures.
Answer
Answer: C
Pick the incorrect ones
(a) An entry once made in the cash book should in no circumstances be erased.
(b) If a mistake is discovered before Cash Book is closed, it should be corrected by drawing the pen through the incorrect entry and inserting the correct one in red ink between the lines.
(c) The disbursing officer should initial every such correction and invariably date his initials.
(d) If the accounts of the month have been closed corrections of errors in amount, classification or name of work, should be made on the advice of Pay & Accounts Officer.
Answer
Answer: D (correction by transfer entry)
State whether true or false
The disbursing officer should verify the totaling of the cash book or have this done by some principal subordinate (other than the writer of the cash book) who should initial (and date) it as correct
(a) True (b) False
Answer
Answer: A
The disbursing officer should verify the total of the postings in the “Bank” column on the payment side by reference to
(a) Challan (b) Paying-in-slip (c) Remittance Register
(d) counterfoils of Non- MICR cheques and record slip of MICR cheque.
Answer
Answer: D
The details of the actual balance should be recorded in CPWA
(a) Form 4 (b) Form 5
(c) Form 6 (d) Form 7
Answer
Answer: B
A certificate of the count of cash by disbursing/verifying officer, specifying both in words and figures, should be recorded. Here the actual cash balance means
(a) Cash at chest
(b) Cash at chest and Imprest advance
(d) Cash at chest, imprest and temporary advances
(d) All of the above
Answer
Answer: A
Cash found surplus should be recorded in
(a) 0059 (b) 2059
(c) 8443 (d) 8550
Answer
Answer: C
Cash found deficient should be recorded in
(a) Miscellaneous Work Advance (b) 8550
(c) 8443 (d) 2075
Answer
Answer: A
The amount of an imprest should be kept as low as possible and should in no case exceed
(a) Rs. 2000/- (b) Rs. 5000/- (c) Rs. 7500/- (d) Rs. 10000/-
Answer
Answer: B
Accounting procedure when permanent imprest drawn for the first time for a
division is
(a) Debit 8671 Credit 8672 (b) Debit 8672 credit 8782
(c) Debit 8671 Credit 8782 (d) Debit 8782 Credit 8675
Answer
Answer: B
Permanent cash imprest is recouped by
(a) Debiting Office Contingency/Work
(b) Crediting office contingency/work
(c) Debiting 8671-departmental cash
(d) Crediting 8671-departmental cash
Answer
Answer: A
Accounting procedure on closure of the permanent cash imprest for a division is
(a) Debit 8671 Credit 8672 (b) Debit 8672 credit 8782
(c) Debit 8782 Credit 8672 (d) Debit 8782 Credit 8675
Answer
Answer: C
State whether true or false
The account of imprest cash should be kept in single copy by the holder of imprest in CPWA Form 2
(a) True (b) False
Answer
Answer: B (in duplicate)
The abstract of charges for recoupment of imprest will be printed at the back of each CPWA Form 2 and should be filled in by
(a) Divisional Accountant
(b) SDO when imprest holder receives fund from him (c) Divisional Officer
(d) Both b & c as the case may be.
Answer
Answer: D
If any item in an imprest account appears to the recouping officer to be open to objection, pick the incorrect option available to recouping officer
(a) The imprest should nevertheless be recouped in full, and the items under objection may be entered in his cash book as “Item awaiting adjustment in the Imprest Account under “Miscellaneous Works Advances”
(b) The imprest should not be recouped in full and the items under objection may be deducted from the bill and entered in his cash book as “Item awaiting adjustment in the Imprest Account under “Miscellaneous Works Advances”
(c) Amount in MWA should not be cleared until either the objection is removed or the amount is made good by the imprest holder.
(d) None
Answer
Answer: B
Permanent Cash Imprest is maintained in CPWA Form 2 whereas Temporary
Advance is accounted for in
(a) Form 1 (b) Form 1A
(c) Form 2 (d) Form 2A
Answer
Answer: C
Accounting of temporary advance should be made as
(a) Dr. 8671 Cr 8782 (b) Dr. 8782 Cr. 8671
(c) Dr. 8782 Cr. Functional Head (d) Dr. Functional Head Cr. 8782
Answer
Answer: B
Pick the Correct one
(i) When payment of temporary advance is made it should to be recorded in Red ink in the inner column on payment side of the cash book
(ii) As and when the disburser, renders the account of Temporary Advance the same should be recorded in Red ink in the inner column of the Receipt side of the Cash Book
(iii) Undisbursed amount of Temporary Advance would form part of the cash balance if not paid in the same financial year in which refund of such advance has been recorded in the cash Book.
(iv) If the outstanding amount thereunder is paid in subsequent month the payment shall be classified as “By payment of undisbursed amount of temporary advance” in the cash column of the payment side.
(a) i, ii and iii (b) i, ii, & iv
(c) ii, iii, and iv (d) All of the above
Answer
Answer: B
Divisional officers may draw advances for Republic Day, Independence Day Celebration or for any other contingency on Contingent Abstract Bill in GAR Form-31. The adjustment of such advance under the proper Head of Account should be made in GAR Form-32 within
(a) 7 days (b) 15 days
(c) one month (d) Three months
Answer
Answer: C
Cash taken out of the chest by the disbursing officer himself to take payment at a distance shall be adjusted within
(a) 7 days (b) 15 days
(c) one month (d) Three months
Answer
Answer: C
Cheque drawing DDO will send their annual requisition for issue of all categories of cheque to
(a) Accredited bank (b) Pay & Accounts Officer
(c) Printing Press Nashik (d) RBI Central Office, Nagpur
Answer
Answer: B
Government cheques have been put into
(a) Two categories (b) Three categories
(c) Four categories (d) Six categories
Answer
Answer: B
Pick the incorrect one
(a) The concerned Pay and Accounts will consolidate Division-wise requirement of all the CDDOs along with his own for onward transmission to the accredited Bank with the direction to deliver the required number of Cheque books directly to CDDOs/PAOs under intimation to him.
(b) Pay & Accounts Offices of the Divisions will endorse a copy of this requisition to their Principal Accounts Office.
(c) The cost of printing, binding, packaging and despatch etc. of Cheque Books will be borne by the Division and Pay and Accounts Office concerned
(d) Stock Register of Cheque Books in CAM Form 1 is to be maintained by Divisional Offices / P.A.O.’s of the Division.
Answer
Answer: C
CDDOs will intimate the first serial number of cheque of all the three categories of Cheque Books from the first day of their use to their
(a) Accredited bank (b) Principal Accounts Officer
(c) Accounts Branch of the Division (d) PAO
Answer
Answer: B
Pay and Account Officer and Principal Accounts Officer will reconcile CDDO/PAO-wise issue of cheque
(a) Monthly (b) Quarterly
(c) Six monthly (d) Yearly
Answer
Answer: D
Fill in the blanks
The reconciliation statement of CDDO/PAO-wise issue of cheque details shall be submitted__________ on__________ of the following month
(a) Dy. CGA/CGA, 10th (b) Dy. CA/CA, 10th
(c) Dy. CGA/CGA, 15th (b) Dy. CA/CA, 15th
Answer
Answer: B
Receipt Books (Form 3) and Cash Memo Books (Form 3-A) required for use in the Divisional Offices are obtained from
(a) Circle Office (b) Pay and Accounts Office
(c) Central Forms Stores, Kolkata (d) Printing Press, Nashik
Answer
Answer: C
Pick the incorrect one
(a) Public money in the department should be kept in strong treasure chest secured by two locks of different patterns.
(b) All the keys of the same lock must be kept in the same person’s custody and the keys of one lock should be kept apart from the keys of the other lock and in different person’s custody.
(c) When there is a guard, the daffadar or other petty officer of the guard should usually be the custodian of one set of keys and he must always be present when the chest is opened and until it is again locked.
(d) Whenever cashier is attached to a division the keys of one of the locks of the treasure chest will necessarily remain in his possession.
(a) i, ii and iii (b) I, iii and iv
(c) ii, iii and iv (d) All of the above
Answer
Answer: D
A duplicate key register should be maintained and the keys should be sent for, examined and returned under fresh sea once a year, in the month of
(a) March (b) April
(c) May (d) September
Answer
Answer: B
State whether True or False
One cashier may make the cash payments of his Division on which strength he is borne and may not be allowed to make cash payment of two or more Divisions wherever such an arrangement is found to be practicable.
(a) True (b) False
Answer
Answer: B
Fill in the blanks
Each CE will give___________ projection of expenditure & receipt to__________
(a) Monthly, DG (Works) (b) Quarterly, DG (Works)
(c) Monthly, PAO (d) Quarterly, PAO
Answer
Answer: B
DG (Works) will give a Division-wise consolidated expenditure and receipt projection to
(a) Chief Controller of Accounts
(b) Controller General of Accounts (c) Principal Accounts Officer
(d) Ministry of Urban Development
Answer
Answer: A
Fill in the blanks
Cases of default in reconciliation of expenditure with PAO concerned shall be
reported by CE to___________ in the month of __________and thereafter
(a) DG (Works), April (b) DG (Works), October
(c) Chief Controller of Accounts, October
(d) Chief Controller of Accounts, October
Answer
Answer: B
Payment of the bills of SE and CE will be made by
(a) Division (b) DG (Works)
(c) Principal Accounts Officer (d) PAO
Answer
Answer: D
The proposal for which LoC can be submitted direct to LoC Cell?
(a) Second (b) Third
(c) Fourth (d) Fifth
Answer
Answer: A
LoC requests received by the PAO will be submitted to Headquarters within
(a) 7 days of receipt (b) 10 days of receipt
(c) 15 days of receipt (d) One month of receipt
Answer
Answer: A
If desired by the division, LoC for full amount will be released by LoC cell in respect of works of
(a) Ministry of Home Affairs & Defence
(b) Ministry of Home Affairs & Railways
(c) Ministry of Defence & Railways (d) Ministry of Railways & Post
Answer
Answer: A
State whether True or False
LOC for the full amount of deposit in respect of Deposit works which are permissible in the system (from autonomous bodies etc.) will be released. Departmental charges will be presumed to be leviable/ deductible from the LOC amount unless the EE specifically suggests with reasons that no such deduction be made.
(a) True (b) False

Answer

Answer: A

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