From the transaction: ‘Credit purchase from S Letts at list price of £250, subject to 10% trade discount’. In what Day book and what accounts will it be recorded & How much will it be recorded?
A. Sales Day book; Dr S Letts £250 ; Cr Sales £250
B. Purchases Day book; Dr Purchases £250 ; Cr S Letts £250
C. Purchases Day book; Dr Purchases £225 ; Cr S Letts £225
D. Sales Day book; Dr S Letts £225 ; Cr Sales £225
From the transaction: ‘S Smart –a debtor returned goods to the business’. In what accounts & what ledger will it be recorded?
A. Dr Returns Inwards a/c in General Ledger & Cr S Smart a/c in Purchases Ledger
B. Dr Returns Inwards a/c in General Ledger & Cr S Smart a/c in Sales Ledger
C. Cr Returns Outwards a/c in General Ledger & Dr S Smart a/c in Sales Ledger
D. Dr Returns Outwards a/c in General Ledger & Cr S Smart a/c in Sales Ledger
From the transaction: ‘Credit purchase from S Letts at list price of £250, subject to 10% trade discount; then return goods to S Letts at list price £40’. How much will the business finally owe S Letts?
A. £4
B. £210
C. £36
D. £189
From the transaction below: ‘Credit sale to P Starkey at list price of £360, subject to 15% trade discount’. How much discount will be given to P Starkey?
A. £306
B. £360
C. £316
D. £54
From the transaction: ‘K Devine returns to us goods with a list price of £150. No discount was previously made.’ In what accounts will it be recorded?
A. Dr K Devine £150 & Cr Returns Outwards £150
B. Cr Returns Inwards £150 & Dr K Devine £150
C. Dr Returns Inwards £150 & Cr K Devine £150
D. Cr K Devine £150 & Dr Returns Outwards £150
The capital equation is:
A. Capital equals assets and liablities
B. Liabilities equals assets less capital
C. Assets equals capital and liabilities
D. Assets less liabilities equals capital
........... is a general term for activities of the business.
A. capital
B. sales
C. transactions
D. purchases
‘Balance sheet’ is .........
A. a type of financial statement
B. record of transactions by categories
C. resources or items owned by the business
D. the amount of the owner’s stake in the business.
Book-keeping entries relating to Payment received from debtor are:
A. debit bank/ cash account & credit debtor’s account
B. credit bank/ cash account & credit debtor’s account
C. credit bank/ cash account & debit debtor’s account
D. debit bank/ cash account & debit debtor’s account
Book-keeping entries relating to Cash Purchases are:
A. credit purchases account & debit Cash/ Bank account
B. debit purchases account & debit Cash/ Bank account
C. credit purchases account & credit Cash/ Bank account
D. debit purchases account & credit Cash/ Bank account
The term ‘Drawings’ means
A. withdrawals from a business by the owner for the business’ use: in cash or goods/ services
B. withdrawals from a business by the owner for the use of both the owner and the business: in cash or goods/ services
C. withdrawals from a business by the owner for the owner’s private use: in cash or goods/ services
D. withdrawals from a business by the owner for the business’ private use: in cash or goods/ services
In the transaction ‘wages of £40 are paid in cash’, which entries are correct?
A. Dr wages account £40 & Cr Cash account £40
B. Dr wages account £40 & Dr Cash account £40
C. Cr wages account £40 & Dr Cash account £40
D. Cr wages account £40 & Cr Cash account £40
Book-keeping entries relating to Payment to creditor are:
A. debit creditor’s account & debit bank/ cash account
B. credit creditor’s account & debit bank/ cash account
C. debit creditor’s account & credit bank/ cash account
D. credit creditor’s account & credit bank/ cash account
.............. is used to record Cash & Bank accounts
A. Sales Ledger
B. Cash book
C. Private Ledger
D. General Ledger
The account ‘T Dove’ has 4 transactions during May, Year 4, including 2 debit entries with £150 & £80 and 2 credit entries with £170 and £35. How much is the balance of this account at the end of May, Year 4?
A. £25 Cr
B. £25 Dr
C. £35 Cr
D. £35 Dr
............. accounts cover various income and expense accounts, e.g. sales, wages, etc.
A. nominal
B. Personal
C. Impersonal
D. Real
.................. account is used for regular banking and withdrawal of money.
A. credit transfer
B. deposit
C. cheque
D. current
In the transaction: ‘Cash sale £1,410, in which £410 was received in cash’. What entries in the Cash book are done?
A. Dr Cash £1,410
B. Dr Cash £410
C. Dr Cash £410 & Dr Bank £1,000
D. Cr Cash £410 & Cr Bank £1,000
From Sales Day book, detail is transferred promptly to .......... account in Sales Ledger
A. Creditor’s
B. Sales
C. Cash/ Bank
D. Debtor’s
The invoice gives details of .................
A. Cash discount
B. Both Trade discount and Cash discount
C. Trade discount
D. Discount allowed
