Accounting IGCSE 2.0

In which book of prime (original) entry is the sale of a fixed asset on credit recorded?

• Cash book

• Debit note

• Sales journal

• General journal

Sam uses the imprest system of petty cash. The imprest amount is $300, which is restored at the end of each month.

The following takes place in March.

Receipts

20 Stamps sold to employees $10

Payments.

March 8 Postage stamps $50

10 Refreshments $62

11 Flowers $20

15 Stationery $17

27 Sam’s travelling expenses $135

How much will the petty cashier receive from the cashier on 1 April?

• $274

• $284

• $294

• $300

Sara’s sales journal includes the following entry.

April 1 Ali $350

To which accounts will this item be posted in Sara’s ledger?

• account debited : Ali

  account credited : cash

• account debited : Ali

  account credited : sales

• account debited : cash

  account credited : Ali

• account debited : sales

  account credited : Ali

The total of David’s purchases journal and purchase returns journal for April showed the following.

purchases journal $10 000

purchase returns journal $900

How are these posted to David’s ledger?

• purchases account : credit $10 000

  purchase returns account : debit 900

• purchases account : debit 10 000

  purchase returns account : credit $900

• purchases account : debit 10 900

  purchase returns account : –

• purchases account : –

  purchase returns account : credit 9100

Where are suppliers’ accounts found in a trader’s accounting records?

• Purchases journal

• Purchases ledger

• Sales journal

• Sales ledger

Purchase of a new computer has been posted to the repairs account in error.

What type of error is this?

• Commission

• Complete reversal

• Original entry

• Principle

Which is an error of omission?

• No entry has been made for the purchase of stationery by cheque.

• Purchase of stationery has been entered only in the cash book.

• Purchase of stationery has been entered only in the stationery account.

• The stationery account has been missed out of the trial balance.

When is a suspense account opened?

• when a Balance Sheet fails to balance

• when a trial balance fails to balance

• when an error of omission is corrected

• when an error of principle is corrected

Rent received, $100, has been debited to rent paid account and credited to cash account.

What is the correcting journal entry?

• account debited : cash 100

  account credited : rent received 100

• account debited : cash 200

  account credited : rent paid 100 , rent received 100

• account debited : rent received 100, rent paid 100

  account credited : cash 200

• account debited : rent paid 100

  account credited : rent received 100

A business receives a bank statement and updates its cash book.

Which item will increase the bank balance in the cash book?

• Bank charges

• Credit transfers received

• Interest charges

• Standing orders paid