Cash Book: JAMB Principles of Accounts Questions, Answers & Notes

What Cash Book covers in the JAMB Principles of Accounts syllabus

The cash book records all cash and bank (money) transactions and is both a book of original entry and a ledger account. Money received is debited, money paid out is credited; the balance shows the cash in hand and at bank (a credit balance on the bank column means an overdraft). A two-column cash book has cash and bank columns; a three-column cash book adds discount columns — discount allowed (to customers) on the debit side and discount received (from suppliers) on the credit side, both memorandum columns posted separately. A contra entry (e.g. cash paid into the bank) affects both cash and bank columns. Small payments are kept in the petty cash book, run on the imprest system, where the petty cashier starts with a fixed float (imprest) and is reimbursed the exact amount spent each period.

For Cash Book, JAMB expects you to be able to:

• Explain the cash book as a book of original entry and a ledger account
• Distinguish two-column and three-column cash books, discounts and contra entries
• Explain the petty cash book and the imprest system

Key facts & revision notes: Cash Book

These are the recurring points our Cash Book questions test — revise them until each feels automatic, then practise the questions above to lock them in.

• The cash book records cash and bank (money) transactions.
• The cash book is both a book of original entry and a ledger account (for cash and bank).
• A two-column cash book has cash and bank columns.
• A three-column cash book has cash, bank and discount columns.
• Money received (coming in) is recorded on the debit side of the cash book.
• Money paid out (going out) is recorded on the credit side of the cash book.
• Discount allowed appears in the discount column on the debit side of the cash book.
• Discount received appears in the discount column on the credit side of the cash book.
• The petty cash book records small/minor cash payments.
• Under the imprest system, the petty cashier is reimbursed the exact amount spent to restore the float.
• The imprest (float) is the fixed amount given to the petty cashier at the start of each period.
• cash paid into the bank) affects both the cash and bank columns of the cash book.
• Paying cash into the bank debits the bank column and credits the cash column (a contra entry).
• The cash book balance shows the cash in hand and at bank available to the business.
• The discount columns are memorandum columns — totalled and posted to the discount accounts separately.
• A cheque received is treated as cash received until it is paid into the bank.
• A larger debit side gives a debit balance — representing cash in hand / a positive bank balance.
• A credit balance on the bank column means the bank account is overdrawn (an overdraft).
• The petty cash book keeps small payments out of the main cash book, reducing clutter.
• The cash book keeps an accurate record of all money (cash and bank) movements.

Worked examples

Three Cash Book questions with the answer and a short explanation, so you can see how the topic is set before you practise the full set.

How Cash Book is tested in JAMB Principles of Accounts

Our Cash Book bank holds 20 questions (5 medium, 15 hard). JAMB Principles of Accounts typically returns to Cash Book year after year, so steady practice on this topic is high-value revision. Questions are multiple-choice with four options, and at UTME pace you get roughly 40 seconds each — which is why timed practice matters.

How to answer Cash Book questions

Work the stem first and predict the answer before you look at the options; then eliminate the ones that contradict the key facts above. Watch for “which is not…”, “all of the above” and “except” style stems, which are where rushed candidates lose easy marks on Cash Book. If a calculation or a precise definition is involved, work it from first principles rather than guessing from a half-remembered rule. When two options look right, re-read the stem for the qualifier that separates them — JAMB rarely repeats an option by accident. If you are still unsure, eliminate the two weakest choices to lift your odds, flag the question, and move on; never burn a full minute on one Principles of Accounts item when the exam gives you about forty seconds each. Then come back to flagged questions with whatever time remains. The single most reliable way to get faster at Cash Book is repeated timed practice, so use the button above until the recurring patterns feel automatic.

Common mistakes to avoid in Cash Book

The errors that cost marks on Cash Book are usually careless rather than conceptual: misreading a negative stem, confusing two similar terms, or rushing a definition you actually know. Candidates also over-rely on “expo” and last-minute cramming instead of understanding the topic — which fails the moment JAMB rephrases a familiar idea. Treat every option as a claim to be checked against the facts above, keep your working tidy for any calculation, and don’t change a considered answer on a hunch. Above all, revise Cash Book actively by answering questions, not just by re-reading notes — recall under time is what the exam rewards.

Frequently asked questions

Is Cash Book part of the JAMB Principles of Accounts syllabus?

Yes. Cash Book is a recognised topic in the JAMB Principles of Accounts syllabus, covering explain the cash book as a book of original entry and a ledger account. You should be able to recall its key facts and apply them to multiple-choice questions.

How many Cash Book questions can I practise on Belmadeng?

There are 20 original, JAMB-standard Cash Book questions in our free bank, each with the correct answer and a worked explanation. You can practise them untimed or as a timed test.

What are the most important points to know about Cash Book?

The cash book records all cash and bank (money) transactions and is both a book of original entry and a ledger account. Money received is debited, money paid out is credited; the balance shows the cash in hand and at bank (a credit balance on the bank column means an overdraft). A two-column cash bo…

How do I answer Cash Book questions quickly in JAMB?

Read the stem carefully, eliminate clearly wrong options, and match the remaining choices to the key facts for Cash Book. Practising timed Cash Book questions builds the speed you need for UTME's pace of about 40 seconds per question.

Are these JAMB Principles of Accounts Cash Book questions past questions or original?

They are original questions written to JAMB (UTME) standard and mapped to the official syllabus — not reproduced past papers. This keeps them legal to use freely while closely mirroring how the real exam tests the topic.

Where can I practise Cash Book questions free without signing up?

Right here — tap “Start Cash Book practice” on this page to begin instantly. Belmadeng's CBT practice is completely free and needs no sign-up, download or subscription.

About these questions: original, JAMB-standard items written from the official UTME Principles of Accounts syllabus (last reviewed 2026-09-18). Belmadeng is an independent study platform and is not affiliated with JAMB. Spotted an error? Use the report link.