S1: A Journal Voucher is used for non-cash transactions. S2: A Contra Voucher is used for cash and bank transactions. Which statement(s) is/are correct? MCQ with Answer and Explanation

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S1: A Journal Voucher is used for non-cash transactions. S2: A Contra Voucher is used for cash and bank transactions. Which statement(s) is/are correct?

A. Neither S1 nor S2

B. S1 only

C. Both S1 and S2

D. S2 only

Answer: Option C

Solution (By JKExamLibrary)

A Journal Voucher (or Transfer Voucher) is used for internal adjustments and non-cash transactions like depreciation. A Contra Voucher is used for transactions involving both cash and bank, like depositing cash into the bank. Both are correct.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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