double entry bookkeeping

You run a business and make a purchase using cash. Is this a Dr or Cr entry in the purchase account?

• Debit

• Credit

• Neither

You purchase office equipment for £250 cash. What are the entries in the accounts

• Dr Bank, Cr office furniture (assets)

• Dr Office furniture (assets), Cr Bank

• Dr Sales ledger control account, Cr office furniture (assets)

• Dr office furniture (assets), Cr Sales ledger control account

What is the cardinal rule of the double entry system?

• Debit the increasing account and credit the decreasing account
• Debit an account and credit another account
• Debit the asset account and credit the liability account
• Debit revenue account and credit expenditure account

Debit refers to the right side of the account

• True

• False

Every Transaction must balance.

• True

• False

• May be

If $ 70 is recorded as debit entry to an account,, a credit entry of $ 70 must be recorded to another account, which ensures every transaction is balanced, this is called:

• Simple entry

• General Journal

• Double entry-system

• No Entry

A general journal is a formal record of the transactions that have affected the business and these transactions are recorded in chronological order

• True

• False

.Payment of rent expenses is recorded on which side of cashbook? ‎

• A. Receipts ‎

• B. Payments ‎

• C. Income

• D. Expense

which book of prime entry is part of the double entry system?

• Cashbook

• General Journal

• Purchases Journal

• Sales Journal

Bank overdraft means:

• a firm wasting its money

• having more receipts than payments

• a firm having paid more out of its bank account than it has put in it

• a firm having brought too many goods