Exam code: 4AC1
Which transaction would cause a decrease in trade payables?
Purchase of goods from a credit supplier
Return of goods from a credit customer
Return of goods to a credit supplier
Sale of goods to a credit customer
Was this exam question helpful?
Where would the total discounts on the credit side of a cash book be posted?
Credit discounts allowed
Credit discounts received
Debit discounts allowed
Debit discounts received
Was this exam question helpful?
Which one of the following is not an asset?
Inventory
Premises
Trade payables
Trade receivables
Was this exam question helpful?
Ling owns a business selling cameras. She maintains a full set of accounting records.
On 1 March 2024, the balance on Delia’s account in Ling’s trade receivables ledger was $1220
During March 2024 the following transactions took place between Ling and Delia.
March 2024 | Transaction |
|---|---|
8 | Sold goods to Delia, $460 |
17 | Delia returned damaged goods, $170 |
30 | Delia settled her balance at 1 March 2024 by credit transfer after taking a cash discount of 5% |
Prepare the account of Delia. Balance the account at 31 March 2024 and bring the balance down on 1 April 2024.
Delia Account
Date | Details | $ | Date 2024 | Details | $ |
|---|---|---|---|---|---|
Was this exam question helpful?
Identify which transaction would be entered in both the payables ledger and the general ledger.
Purchase of goods for cash
Purchase of equipment by cheque
Return of goods to a credit customer
Return of goods to a credit supplier
Was this exam question helpful?
Identify which one of the following would be entered on the credit side of the equity account.
Cash drawings
Cash drawings
Loss for the year
Profit for the year
Was this exam question helpful?
On 1 April 2023 Magnusson owed Tina, a credit supplier, $750
The following transactions took place between them during April 2023.
April | Transaction |
|---|---|
4 | Paid the balance at 1 April 2023 by cheque after deducting a 2% cash discount. |
12 | Purchased goods on credit, $2120 |
22 | Returned faulty goods, $130 |
Prepare the account of Tina. Balance the account on 30 April 2023 and bring the balance down on 1 May 2023.
Date | Details | $ | Date | Details | $ |
|---|---|---|---|---|---|
State one reason why a supplier’s account could have a debit balance.
Was this exam question helpful?
Identify which is a liability.
Inventories
Other payables
Other receivables
Petty cash
Was this exam question helpful?
Identify which account always has a credit balance.
Carriage inwards
Carriage outwards
Discount allowed
Discount received
Was this exam question helpful?
State two reasons why a credit customer’s account may have a credit balance.
Kirk maintains a full set of accounting books and offers credit customers a 5% trade discount on orders over $1000
During January 2023 the following transactions took place between Kirk and Bella.
Here is the text converted into a table without changing content, punctuation, or order:
January | Transaction |
|---|---|
2 | Cheque received, $3500, in full settlement of the account balance on 1 January 2023 of $3720 |
9 | Sold goods, list price $880 |
17 | Returned goods sold on 9 January 2023, $170 |
28 | Sold goods, list price $1300 |
Prepare the account of Bella for the month of January 2023. Balance the account on 31 January 2023 and bring the balance down on 1 February 2023.
Bella Account
Date 2023 | Details | $ | Date 2023 | Details | $ |
|---|---|---|---|---|---|
Was this exam question helpful?
Jack provided the following information for the year ended 30 April 2023.
1 May 2022 | Stationery account balance $250 |
10 May 2022 | Purchased stationery, $80, paying by cheque. |
17 May 2022 | Returned stationery, $15, refund received by cheque. |
29 August 2022 | Jack took stationery, $25, for his personal use. |
30 April 2023 | Closing stationery was valued at $190 |
Prepare the stationery account for the year ended 30 April 2023. Balance the account on this date and bring the balance down on 1 May 2023.
Stationery Account
Date 2023 | Details | $ | Date 2023 | Details | $ |
|---|---|---|---|---|---|
Was this exam question helpful?
Identify which statement is incorrect.
Assets = liabilities + equity
Equity = assets – liabilities
Equity – liabilities = assets
Liabilities = assets – equity
Was this exam question helpful?
Identify which of these accounts always has a credit balance.
Carriage inwards
Carriage outwards
Discount allowed
Discount received
Was this exam question helpful?
On 1 September 2022 Omar owed Reece, a credit supplier, $840
During the month of September 2022, the following transactions between Omar and Reece took place.
September 2022 | Transaction |
|---|---|
5 | Purchased goods, $640 |
17 | Returned goods, $190 |
28 | Paid in full the balance owing at 1 September 2022 |
Prepare the account of Reece for the month ended 30 September 2022. Balance the account on that date and bring the balance down on 1 October 2022
Reece Account
Date | Details | $ | Date | Details | $ |
Was this exam question helpful?
Sam currently maintains only a cash book to record his business transactions. He has decided that he should maintain a full set of accounting records in the future.
Evaluate two benefits to Sam of maintaining a full set of accounting records.
Was this exam question helpful?
Identify which is a current liability.
Cash in hand
Inventory
Trade receivables
Trade payables
Was this exam question helpful?
Identify the double entry to record goods taken for personal use by a trader.
Account to be debited | Account to be credited | |
|---|---|---|
A | Drawings | Purchases |
B | Drawings | Sales |
C | Purchases | Drawings |
D | Sales | Drawings |
Was this exam question helpful?
Martina, a retailer, maintains a full set of accounting records.
On 1 April 2022, Martina owed Rafa $640 for goods supplied.
During April 2022, the following transactions took place between Martina and Rafa.
April 2022 | Transaction |
|---|---|
12 | Purchased goods, list price $850, less a trade discount of 20% |
19 | Returned goods, list price $100, from the order received on 12 April 2022 |
29 | Paid the balance owing at 1 April 2022 by credit transfer after taking a cash discount of 5% |
(i) Prepare the account of Rafa for the month of April 2022. Balance the account on 30 April 2022 and bring the balance down on 1 May 2022.
(6)
Rafa Account
Date 2022 | Details | $ | Date 2022 | Details | $ |
|---|---|---|---|---|---|
(ii) State in which section of the statement of financial position at 30 April 2022 the balance of Rafa’s account would appear.
(1)
Martina currently offers only cash sales and proposes to offer credit terms to her customers.
Evaluate whether Martina should proceed with this proposal.
Was this exam question helpful?
Where are the personal accounts of customers buying goods on credit maintained?
Purchases day book
Sales day book
Trade payables ledger
Trade receivables ledger
Was this exam question helpful?
Where would the total discounts on the debit side of a cash book be posted?
Credit discounts allowed
Credit discounts received
Debit discounts allowed
Debit discounts received
Was this exam question helpful?
Which account always has a credit balance?
Carriage inwards
Carriage outwards
Returns inwards
Returns outwards
Was this exam question helpful?
Which statement is incorrect?
Assets = Liabilities + Capital
Capital = Assets - Liabilities
Capital - Liabilities = Assets
Liabilities = Assets - Capital
Was this exam question helpful?
Identify which account always has a credit balance.
Carriage inwards
Carriage outwards
Returns inwards
Returns outwards
Was this exam question helpful?
Eldin provided the following information relating to his trade receivables ledger control account for the month ended 31 August 2020.
$ | |
|---|---|
Credit sales | 29 535 |
Customer overpayment refunded by cheque | 160 |
Discount allowed | 984 |
Interest charged | 119 |
Irrecoverable debts | 597 |
Receipts from credit customers | 36 250 |
Returns inwards | 380 |
Trade payables set-off | 665 |
Credit balances at 31 August 2020 | 240 |
Prepare the trade receivables ledger control account for the month ended 31 August 2020. Balance the account on this date and bring the balances down at 1 September 2020.
Eldin currently makes all of his sales on a credit basis. He is considering making cash sales only in the future.
Explain one advantage and one disadvantage of this proposal and advise Eldin whether or not he should make the change.
Was this exam question helpful?
Identify where total discounts on the credit side of a cash book would be posted.
Credit discounts allowed
Credit discounts received
Debit discounts allowed
Debit discounts received
Was this exam question helpful?
Identify the double entry to record monies withdrawn from the bank for personal use.
Account to be Debited | Account to be Credited | |
|---|---|---|
A | Bank | Cash |
B | Bank | Drawings |
C | Drawings | Bank |
D | Drawings | Cash |
Was this exam question helpful?
Which of these accounts always has a credit balance?
Carriage inwards
Carriage outwards
Discount allowed
Discount received
Was this exam question helpful?
Which accounts are maintained in the payables ledger?
Creditors
Debtors
Purchases
Sales
Was this exam question helpful?
Where would the account of a credit supplier be found?
Payables ledger
Purchases returns book
Receivables ledger
Sales day book
Was this exam question helpful?
Where is the total of the discount column on the credit side of a three-column cash book posted?
Credit discounts allowed
Credit discounts received
Debit discounts allowed
Debit discounts received
Was this exam question helpful?
A trader withdraws cash from the bank for his own use.
Which one of the following is the correct entry for this transaction?
Account to be debited | Account to be credited | |
|---|---|---|
A | Bank | Drawings |
B | Cash | Drawings |
C | Drawings | Bank |
D | Drawings | Cash |
Was this exam question helpful?
On 1 December 2019 Isabella was owed $480 by Shania, a credit customer. During the month of December 2019, the following transactions took place.
December 2019 | Transaction |
|---|---|
9 | Sold goods on credit to Shania, $195 |
14 | Shania returned goods, $35 |
27 | Shania paid the balance owing at 1 December 2019 by cheque, after deducting a 5% discount |
Prepare the account of Shania in Isabella’s books of account. Balance the account at 31 December 2019 and bring the balance down at 1 January 2020.
Shania Account
Date | Details | $ | Date | Details | $ |
|---|---|---|---|---|---|
Was this exam question helpful?
Which statement is incorrect?
Assets = liabilities + capital
Capital = assets – liabilities
Capital – liabilities = assets
Liabilities = assets – capital
Was this exam question helpful?
Soha purchased stationery for her business using her own money.
What is the entry in the business’s books?
Account to be debited | Account to be credited | |
|---|---|---|
A | Cash | Stationery |
B | Equity | Stationery |
C | Stationery | Cash |
D | Stationery | Equity |
Was this exam question helpful?