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- 1. Multiple Choice
Paid the wages for the month $400 by cheque. What is the double entry to record this transaction?
Debit Cheque and Credit Wages
Debit Wages and Credit Bank
Debit Wages and Credit Cheque
Debit Bank and Credit Wages
- 2. Multiple Choice
Rent received by cheque $500. What is the double entry to record this transaction?
Debit Rent and Credit Cheque
Debit Bank and Credit Rent received
Debit Cheque and Debit Rent
Debit Rent received and Credit Bank
- 3. Multiple Choice
Jack withdrew goods worth $500 from the business for his personal use. What is the double entry to record this transaction?
Debit Inventory and Credit Jack
Debit Drawings and Cr Inventory
Debit Drawings and Credt Purchases
Debit Purchases and Credit Drawings
- 4. Multiple Choice
Bought goods worth $4000 on credit from Ben. What is the double entry to record this transaction?
Debit Purchases and Credit Cash
Debit Cash and Credit Purchases
Debit Payables and Credit Purchases
Debit Purchases and Credit Payables
- 5. Multiple Choice
Bought a computer by cash $2500. What is the double entry to record this transaction?
Debit Computer and Credit Cash
Debit Cash and Credit Computer
Debit Cash and Credit Purchases
Debit Purchases and Credit Cash
- 6. Multiple Choice
Sold goods on credit to Mark. What is the double entry to record this transaction?
Debit Cash and Credit Sales
Debit Receivables and Credit Sales
Debit Sales and Credit Receivables
Debit Cash and Credit Sales
- 7. Multiple Choice
The business owner, Jack invested $9000 into the business bank account. What is the double entry to record this transaction?
Debit Bank and Credit Capital
Debit Capital and Credit Bank
Debit Capital and Credit Jack
Debit Jack and Credit Bank
- 8. Multiple Choice
Which account would always be a credited?
Return outwards
Carriage inwards
Bank
Cash
- 9. Multiple Choice
Mr A purchased goods on credit from Mr B but then returned them as they were faulty.
Which of the following statements would be true?
Mr A would send a credit note to Mr B
Mr A would send an invoice to Mr B
Mr B would send a credit note to Mr A
Mr B would send an invoice to Mr A
- 10. Multiple Choice
The closing net assets of a sole trader is given by the equation:
Opening net assets + Additional Capital + Profit + Drawings
Opening net assets + Additional Capital + Profit – Drawings
Opening net assets - Additional Capital + Profit + Drawings
Opening net assets + Additional Capital – Profit – Drawings
- 11. Multiple Choice
What is the double entry for purchase of shop equipment for cash?
Dr Bank - Cr Sales
Cr Bank - Dr Shop Equipment
Dr Shop Equipment - Cr Cash
Dr Purchases - Cr Cash
- 12. Multiple Choice
Bought photocopier worth $3000 on credit from Computers Ltd.
Dr Office equipment
Cr Trade payable - Computers Ltd
Dr Trade receivable - Computers Ltd
Cr Computers
Dr Office equipment
Cr Cash in bank.
Dr Inventory
Cr Office equipment
- 13. Multiple Choice
Bought goods for resale $3000 on credit from Ben.
Dr Sales revenue
Cr Trade receivable - Ben
Dr Purchases
Cr Trade Payable - Ben
Dr Trade receivable - Ben
Cr Sales revenue
Dr Inventory
Cr Trade payable - Ben
- 14. Multiple Choice
Returned goods worth $200 bought on credit to Jem, a supplier.
Dr Sales returns $200
Cr Inventory $200
Dr Trade payable - Jem $200
Cr Inventory $200
Dr Trade payable - Jem $200
Cr Purchase Returns $200
Dr Sales returns $200
Cr Jem $200
- 15. Multiple Choice
Jack withdrew goods worth $500 from the business for his personal use.
Dr Drawings
Cr Inventory
Dr Drawings
Cr Capital
Dr Purchases
Cr Drawings
Dr Drawings
Cr Purchases
- 16. Multiple Choice
Dolly, owner of the business, took $50 from office cash to pay for her personal parking fines.
Dr Drawings
Cr Cash
Dr Fines expense
Cr Cash
Dr Cash
Cr Drawings
Dr Cash
Cr Fines expense
- 17. Multiple Choice
Cost of Sales [COS] can be computed using:
Op inv + Purchases - Purchase returns - Carriage inwards - Cl Inv
Op inv + Purchases - Purchase returns + Carriage inwards + Cl Inv
Op inv + Purchases - Purchase returns + Carriage inwards - Cl Inv
Op inv + Purchases - Purchase returns + Carriage outwards - Cl Inv
- 18. Multiple Choice
Trade receivable Marry has declared bankruptcy and unable to pay remaining debt of $2000. The double entry for bad debt written off is as follow:
Dr Receivables Marry; Cr Bad Debt Exp
Dr Bad Debt Exp ; Cr Receivables Marry
Dr Bad Debt Exp ; Cr Bad Debt Recovered
Dr Bad Debt Exp ; Cr Bank
- 19. Multiple Choice
The business is able to recover the bad debt previous expensed off on Marry. The double entry is as follows:
Dr Receivables ; Cr Bad Debt Recovered
Dr Cash ; Cr Receivables
Dr Cash ; Cr Bad Debt Recovered
Dr Receivables ; Cr Cash
- 20. Multiple Choice
The business managed to obtained a bank loan of $50,000. The double entry is as follows:
Dr Receivable ; Cr Loan
Dr Bank ; Cr Capital
Dr Receivable ; Cr Bank
Dr Bank ; Cr Loan
- 21. Multiple Choice
J Ltd sold goods with a list Price of $2,000 on credit to a customer. J Ltd has a 30 day payment period and has offered the customer a 3% prompt payment discount if payment is made within 15 days.
Based on past experience the customer is expected to take up the 3% discount.
What is the double entry to account for the transaction above initially?
Dr Receivables $2000 Cr Sales $2000
Dr Receivables $1940 Cr Sales $1940
Dr Receivables $1940 Dr Discount $60 Cr Sales $2000
Dr Receivables $2000 Cr Discount $60 Cr Sales $1940
- 22. Multiple Choice
J Ltd sold goods with a list Price of $2,000 on credit to a customer. J Ltd has a 30 day payment period and has offered the customer a 3% prompt payment discount if payment is made within 15 days.
Based on past experience the customer is expected to take up the 3% discount.
What is the double entry to account for the transaction above subsequently as the customer pays AFTER 15 days?
Dr Bank $1940 Cr Receivables $1940
Dr Bank $2000 Cr Receivables $2000
Dr Bank $2000 Cr Receivables $1940 Cr Sales $60
Dr Bank $1940 Dr Discount Allowed $60 Cr Receivables $2000
- 23. Multiple Choice
J Ltd sold goods with a list Price of $2,000 on credit to a customer. J Ltd has a 30 day payment period and has offered the customer a 3% prompt payment discount if payment is made within 15 days.
Based on past experience the customer is NOT expected to take up the 3% discount.
What is the double entry to account for the transaction above initially?
Dr Receivables $2000 Cr Sales $2000
Dr Receivables $1940 Cr Sales $1940
Dr Receivables $1940 Dr Discount $60 Cr Sales $2000
Dr Receivables $2000 Cr Discount $60 Cr Sales $1940
- 24. Multiple Choice
J Ltd sold goods with a list Price of $2,000 on credit to a customer. J Ltd has a 30 day payment period and has offered the customer a 3% prompt payment discount if payment is made within 15 days.
Based on past experience the customer is NOT expected to take up the 3% discount.
What is the double entry to account for the transaction above subsequently as the customer pays WITHIN 15 days?
Dr Bank $1940 Cr Receivables $1940
Dr Bank $2000 Cr Receivables $2000
Dr Bank $2000 Cr Receivables $1940 Cr Sales $60
Dr Bank $1940 Dr Sales $60 Cr Receivables $2000
Dr Bank $1940 Dr Discount Allowed $60 Cr Receivables $2000
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