Chapter 3: Recording financial transactions

Which of the following is a source document that would be entered into the accounting system?

• Debit note

• Credit note

• Sales order

• Purchase order

Which of the following best explains the imprest system of petty cash?

• Each month an equal amount of cash is transferred into petty cash

• The exact amount of petty cash expenditure is reimbursed at intervals to maintain a fixed float

• Petty cash must be kept under lock and key

• The petty cash total must never fall below the imprest amount

When a purchase invoice is received from a supplier which two of the following documents would the invoice be checked to?

• Sales order

• Purchase order

• Remittance advice

• Goods received note

• Credit note

George purchases goods on credit from Hardeep for £1,000. £100 of these goods are defective and George returns them to Hardeep. What document would Hardeep issue to George in respect of the returned goods?

• Invoice

• Remittance advice

• Credit note

• Delivery note

Oscar downloads a report of his bank transactions for the day. The report shows a cash payment of £412 which the computerised accounting system has not been able to match to a transaction.

The unmatched payment is most likely the result of:

• the purchase of a new laptop for £412

• payment to a regular credit supplier for an invoice totalling £412

• a receipt from a credit customer in respect of an invoice for £450 on which a prompt payment discount of £38 was taken

• the payment of net wages £412 which is consistent with the payroll ledger

Holly has downloaded a transaction report from her electronic banking system. The report shows a receipt of £565 which the computerised accounting system has not been able to match to a transaction.

Which of the following transactions may have resulted in the unmatched receipt?

• A payment made to settle a supplier invoice of £600 on which a prompt payment discount of £35 has been taken

• A standing order paid in respect of rental charges of £565 for the month

• Proceeds of £565 from the sale of machinery to a competitor

• A receipt from a credit customer in settlement of an invoice of £565

The petty cash float in a business has an imprest amount of £200. At the end of March vouchers in the petty cash box totalled £136 and the amount of cash remaining in the box was £54.

Which of the following explains the difference?

• A petty cash voucher for £10 is missing

• An employee was given £10 too little when making a petty cash claim

• An employee reimbursed petty cash with £10 in respect of postage stamps used, but no voucher was prepared

• A voucher for £10 was put in the box but no payment was made to the employee

Which two of the following are source of documents that contain information that will be entered into a business's accounting system?

• Goods received note

• Invoice to a customer

• Purchase order to a supplier

• Cheque to a supplier

• Delivery note to a customer