Question 1

Which one of the following is not an accurate description of the sales day book?

Accepted Answer

A)  Also known as the sales listing. 
B)  The book of prime entry for sales and sales returns. 
C)  Records the daily sales made on each trading day of the year. 
D)  Records the total amount due from each customer, the net sales value of each sale and the VAT due on each sale. 
A)  Also known as the sales listing. 
B)  The book of prime entry for sales and sales returns. 
C)  Records the daily sales made on each trading day of the year. 
D)  Records the total amount due from each customer, the net sales value of each sale and the VAT due on each sale.

Question 2

The petty cash book is a book of prime entry which is the first record of the receipt of small sums of cash from the bank and of small sums of cash paid out of the business on a day to day basis.

Accepted Answer

A) True 
 B)False

Question 3

Which one of the following would not be recorded in the sales returns day book?

Accepted Answer

A)  The transaction date on a credit note. 
B)  The customer name. 
C)  Details of goods or services to which the credit note relates. 
D)  The credit note total amount. 
A)  The transaction date on a credit note. 
B)  The customer name. 
C)  Details of goods or services to which the credit note relates. 
D)  The credit note total amount.

Question 4

The bank balance shown in Jay's cash book at 31 October is £52,135.67. Receipts recorded in the cash book and paid into the bank, which have not yet been recorded as receipts on the bank statement at 31 October total up to £5,981.45. Payments recorded in the cash book that have not yet been listed as payments on the bank statement at 31 October add up to £4,621.40. The bank statement shows a direct payment to a supplier of £275.22 which has not been recorded in the cash book. What is the bank balance on the bank statement at 31 October once any necessary adjustments to the bank balance in the cash book have been made?

Accepted Answer

A)  £50,500.40 
B)  £50,775.62 
C)  £51,050.84 
D)  £53,220.50 
A)  £50,500.40 
B)  £50,775.62 
C)  £51,050.84 
D)  £53,220.50

Question 5

Discounts received are debited to each individual sales ledger account.

Accepted Answer

A) True 
 B)False

Question 6

During the financial year ended 30 September, Daria Limited sells a piece of plant and machinery. This piece of plant and machinery had originally cost £30,000 when it was acquired four years ago. What is the correct double entry to record the removal of the cost of this piece of plant and machinery from the books of account of Daria Limited?

Accepted Answer

A)  Debit cash £30,000, Credit plant and machinery cost account £30,000. 
B)  Debit non-current asset disposals account £30,000, Credit cash £30,000. 
C)  Debit non-current asset disposals account £30,000, Credit plant and machinery cost account £30,000. 
D)  Debit plant and machinery cost account £30,000, Credit non-current asset disposals account £30,000. 
A)  Debit cash £30,000, Credit plant and machinery cost account £30,000. 
B)  Debit non-current asset disposals account £30,000, Credit cash £30,000. 
C)  Debit non-current asset disposals account £30,000, Credit plant and machinery cost account £30,000. 
D)  Debit plant and machinery cost account £30,000, Credit non-current asset disposals account £30,000.

Question 7

Sales invoices record the amounts owed by customers for goods supplied on credit.

Accepted Answer

A) True 
 B)False

Question 8

The sales ledger records transactions with individual credit customers. Are the transactions listed below debits or credits in each individual customer's sales ledger account?

Accepted Answer

A)  Cash refunds = Debit 
B)  Cash received = Credit 
C)  Irrecoverable debts = Credit 
D)  Sales invoices = Debit 
A)  Cash refunds = Debit 
B)  Cash received = Credit 
C)  Irrecoverable debts = Credit 
D)  Sales invoices = Debit

Question 9

Debit VAT account, Credit cash is the correct double entry to record the payment of VAT to HM Revenue and Customs.

Accepted Answer

A) True 
 B)False

Question 10

Marwan Limited made sales net of VAT of £90,000 in May. These net sales were posted in error to the credit side of the purchases account. What is the journal entry required to correct this error of principle?

Accepted Answer

A)  Debit sales £90,000, Credit purchases £90,000. 
B)  Debit purchases £90,000, Credit sales £90,000. 
C)  Debit sales £180,000, Credit purchases £180,000. 
D)  Debit purchases £180,000, Credit sales £180,000. 
A)  Debit sales £90,000, Credit purchases £90,000. 
B)  Debit purchases £90,000, Credit sales £90,000. 
C)  Debit sales £180,000, Credit purchases £180,000. 
D)  Debit purchases £180,000, Credit sales £180,000.

Which one of the following is not an accurate description of the sales day book?

The petty cash book is a book of prime entry which is the first record of the receipt of small sums of cash from the bank and of small sums of cash paid out of the business on a day to day basis.

Which one of the following would not be recorded in the sales returns day book?

Discounts received are debited to each individual sales ledger account.

Sales invoices record the amounts owed by customers for goods supplied on credit.

The sales ledger records transactions with individual credit customers. Are the transactions listed below debits or credits in each individual customer's sales ledger account?

Debit VAT account, Credit cash is the correct double entry to record the payment of VAT to HM Revenue and Customs.

Marwan Limited made sales net of VAT of £90,000 in May. These net sales were posted in error to the credit side of the purchases account. What is the journal entry required to correct this error of principle?

Introduction

The Statement of Financial Position

The Statement of Profit or Loss

Double-Entry Bookkeeping 1: Debits, Credits,t Accounts, the Trial Balance and the Financial Statements

The Statement of Cash Flows

Business Organisations and the Financing of Business

Ratio Analysis : Liquidity, Working Capital and Long-Term Financial Stability

Corporate Governance and Sustainability

Filters

Exam 5: Double-Entry Bookkeeping 2: Books of Prime Entry, Accounting Systems and Other Double-Entry Applications

Which one of the following is not an accurate description of the sales day book?

The petty cash book is a book of prime entry which is the first record of the receipt of small sums of cash from the bank and of small sums of cash paid out of the business on a day to day basis.

Which one of the following would not be recorded in the sales returns day book?

Discounts received are debited to each individual sales ledger account.

Sales invoices record the amounts owed by customers for goods supplied on credit.

The sales ledger records transactions with individual credit customers. Are the transactions listed below debits or credits in each individual customer's sales ledger account?

Debit VAT account, Credit cash is the correct double entry to record the payment of VAT to HM Revenue and Customs.

Marwan Limited made sales net of VAT of £90,000 in May. These net sales were posted in error to the credit side of the purchases account. What is the journal entry required to correct this error of principle?

Introduction

The Statement of Financial Position

The Statement of Profit or Loss

Double-Entry Bookkeeping 1: Debits, Credits,t Accounts, the Trial Balance and the Financial Statements

The Statement of Cash Flows

Business Organisations and the Financing of Business

Ratio Analysis : Liquidity, Working Capital and Long-Term Financial Stability

Corporate Governance and Sustainability

Filters