Exam 4: Recording Transactionsthe Journal and Ledger Accounts

Which of the following is correct for recording the payment to a supplier for a purchase previously made on account?

Which of the accounts listed below would be increased with a debit entry?

Doubtful debts provision is a contra asset account.

In closing off the accounts, profit is transferred to capital.

An account used to calculate gross profit on trading, prior to the profit and loss account is a/an ________ account.

On the worksheet, a loss would appear as a credit in the profit and loss columns.

In closing off the accounts the balance in the Cost of Sales account will be:

Recording a payment for utilities as a debit to vehicle expense would not cause the trial balance to be out of balance.

In a/an ________, an expense needs to be increased and a liability account set up.

In the trial balance of a firm's accounting records, Inventory has a balance of $40 000 and Purchases has a balance of $1 000 000. The count of ending inventory is $50 000. Cost of sales is:

In adjusting for a prepayment, the expense account needs to be ________ and an asset account needs to be ________.

Which of the following would not be found in a manufacturing account?

On a worksheet, the balance of the Doubtful Debts Provision account will appear:

After closing off the accounts, which of the following accounts will have a zero balance?

With a computerised accounting system, there is no need for an audit trail.

List five examples of errors that would prevent a trial balance from balancing. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Your ledger accounts have the following balances: Cash 10,000 Creditors 85,000 Capital 337,000 Equipment 250,000 Sales 325,000 Inventory 50,000 Cost of Sales 250,000 Drawings 25,000 Expenses 52,000 Debtors 110,000 What is the balance of the debit and credit columns of the trial balance?

A balanced trial balance is proof that there are no errors in the accounts.

The book that is used to record transactions in a double-entry accounting system is the:

Your ledger accounts have the following balances: Cash 15,000 Debtors 125,000 Creditors 92,000 Capital ??? Equipment 175,000 Sales 289,000 Inventory 42,000 Drawings 22,000 Expenses 48,000 Cost of Sales 140,000 What is the balance of the Capital account?