Ledgers and Trial Balance

Which of the following are real accounts?

I. Furniture A/c

II. Debtors A/c

III. Capital A/c

IV. Motor Van A/c

• I and II only

• I and IV only

• II and III only

• II and IV only

Mrs. Green is a dry goods merchant. Which of the

following transactions would result in a debit to her

Cash Account?

• Sold goods for cash

• Paid cash to office cleaner

• Bought goods for cash

• Paid installment on loan

The trial balance is a statement which helps us to

• Discover all types of errors

• Determine the arithmetical accuracy of postings

• Prove that transactions have been recorded in the

  proper accounts

• Prove that transactions have been correctly analysed

Which of the following statements describes real

accounts?

• The return accounts which appears in the Trading

  Account

• Purchases and Sales Accounts which appears in the

  Trading and Profit and Loss Account.

• Records of property which appear in the Balance Sheet

• All debtors’ and creditors’ accounts shown in the

  subsidiary ledgers

Goods previously bought for $90 are returned by the

buyer to D. Fine. How should this be recorded in

the buyer’s journal?

• Dr. D. Fine’s A/c

  Cr. Returns Outwards A/c

• Dr. D. Fine A/c

  Cr. Returns Inwards A/c

• Dr. Returns Inwards A/c

  Cr. D. Fine’s A/c

• Dr. Returns Outwards A/c

  Cr. Goods A/c

Which of the following sets of accounts will contain

only debit entries in the Trial Balance?

• Discount received, stock, purchases returns, salaries

• Sales returns, wages paid, machinery, discount

  allowed

• Wages due, rent, sales returns, discount allowed

• Salaries due, discount received, sales returns, stock

The proprietor of a business took home an old office

desk valued on the books at $450. How should this

transaction be recorded in his books?

• Dr. Office Furniture A/c; Cr. Drawings A/c

• Dr. Profit & Loss A/c; Cr. Office Furniture A/c

• Dr. Drawings A/c; Cr. Office Furniture A/c

• Dr. Office Furniture A/c; Cr. Capital A/c

Which of the following are nominal accounts?

I. Wages

II. Creditors

III. Purchases

IV. Furniture

• I and III only

• I and IV only

• II and III only

• II and IV only

What would be the effect on a firm’s Balance Sheet

of the purchase of equipment on credit?

• Asset increased; liability decreased

• Asset increased; liability increased

• Asset decreased; liability increased

• Asset decreased; liability decreased

Which of the following accounts does NOT have a

credit balance

• R. Smith (Supplier)

• Rent Received

• Bad debts recovered

• Purchases