Cashbooks 2

Tony paid a cheque for $3250 to James in full settlement of a debt for $3400.

How will James record this transaction?

• debit bank $3250 discount allowed $150

  credit Tony $3400

• debit Tony $3400

  credit bank 3250 discount allowed $150

• debit bank $3250 discount received $150

  credit Tony $3400

• debit Tony $3400

  credit bank 3250 discount received $150

Amy is a trader. She withdrew cash from the business bank account for personal use.

How will this transaction be recorded?

• account to be debited bank

  account to be credited cash

• account to be debited cash

  account to be credited bank

• account to be debited bank

  account to be credited drawings

• account to be debited drawings

  account to be credited bank

How would the totals of the discount allowed and discount received accounts be recorded in a

trial balance?

• debit discount allowed

  credit discount received

• debit discount received

  credit discount allowed

• debit discount allowed and discount received

  credit ---

• debit discount allowed ---

  credit discount received discount allowed and discount received

Which is both a book of prime (original) entry and a part of the ledger?

• cash book

• journal

• purchases journal

• sales journal

A business buys goods for cash which are intended for resale.

In which book of prime (original) entry is the transaction entered?

• cash book

• journal

• purchases journal

• sales journal

Which entries are made in X’s ledger to record the payment by a customer of money owing to X?

• account to be debited cash

  account to be credited trade payable

• account to be debited cash

  account to be credited trade receivable

• account to be debited trade receivable

  account to be credited cash

• account to be debited trade payable

  account to be credited cash

Carol purchased goods from Janet on credit for $5000.

Carol pays Janet by cheque after deducting cash discount of $125.

What are the ledger account entries in Carols’s books to record the payment?

• account debited bank $4875 discount allowed $125

  account credited Janet $5 000

• account debited Janet $5 000

  account credited bank $4875 discount allowed $125

• account debited bank $4875 discount received $125

  account credited Janet $5 000

• account debited Janet $5 000

  account credited bank $4875 discount received $125

Maria, a seller, allows cash discount to Sara. What is the double entry for this in Sara's ledger?

• account debited cash

  account credited discount received

• account debited Maria

  account credited discount received

• account debited discount allowed

  account credited cash

• account debited discount allowed

  account credited Maria