9 EMS - Credit Transactions: Debtors & General Ledger Revision

A transaction in which goods and services are provided now and paid later is a ....

• cash transaction

• credit transaction

• illegal transaction

• theft

The source document for a credit transaction is ...

• a receipt

• a cheque

• a memorandum

• an invoice

Credit purchases made by a debtor are recorded in the... of your business.

• Cash receipts journal.

• Cash payments journal.

• Debtors journal.

• Creditors journal.

Debtors are classified as...

• A Liability

• An Expense

• An Income

• An Asset

A credit sale has the following effect on the accounting equation...

• Increase Debtors, increase Owners Equity

• Decrease Debtors, decrease Owner's Equity

• Increase Bank, Decrease Debtors

• Increase Liabilities, decrease Owner's Equity

Debtors Allowances are...

• Sales

• Discounts

• Returns of goods purchased

• Liabilities

Double entry in accounting means that there must be________ entries for every transaction?

• two

• three

• six

• one

A General Ledger / T) has a ______ and _______ side.

• cash receipt and debtors

• debit and payments

• debit and credit

• creditors and debtors

Assets increase on the ________ side in a General Ledger

• subsidiary

• T-account

• credit

• debit

A current asset example is...

• Debtors

• Capital

• Drawings

• Office furniture