Double Entry

1 The double entry to record the return of goods to J. Sam by the business (in the business’s accounts) is

• A Debit: J. Sam; Credit: Return Outwards

• B Debit: Return Inwards; Credit: J. Sam

• C Debit: Return Outwards; Credit: J. Sam

• D Debit: J. Sam; Credit: Sales

1 Real accounts will include

• A motor vans

• B creditors

• C debtors

• D accounts payable

The firm refunded a debtor by cash when he overpaid his account. What is the double entry to record this transaction?

• A Debit Debtor; Credit Sales

• B Debit Sales; Credit Cash

• C Debit Cash; Credit Debtor

• D Debit Debtor; Credit Cash

Which of the figures below represents the closing balance on the Motor Vehicle account?

• A $2,000

• B $6,000

• C $7,000

• D $8,000

Nominal accounts will NOT include

• A Wages expense

• B Commissions receivable

• C Rent Expense

• D Creditors

The following double entry was recorded in the books of P. Newton: ‘Debit: Equipment, Credit: Tim Ltd.’ What transaction has occurred?

• A P. Newton returned equipment to Tim Ltd.

• B Tim Ltd. bought equipment from P. Newton on credit

  
  

• C P. Newton bought equipment on credit from Tim Ltd.

• D Tim Ltd. returned equipment to P. Newton

The owner pays the firm’s electricity bill using his personal funds. What is the double entry to record this transaction?

• A Dr. Electricity, Cr. Capital

• B Dr. Cash, Cr. Capital

• C Dr. Capital, Cr. Electricity

• D Dr. Capital, Cr. Cash

Which of the following transactions occurred in the L. Charlie account during the month of February?

I Credit purchases

II Payment of goods bought on credit with cheque

III A refund

IV Return of goods

• A I and II only

• B II and IV only

• C I, II and III only

• D I, II and IV only

N. Apple bought goods on credit from Pencil Point Ltd. What is the double entry to record this transaction in the accounting records of Pencil Point Ltd.?

• A Debit: N. Apple; Credit: Sales

• B Debit: Sales; Credit: N. Apple

• C Debit: Purchases; Credit: Pencil Point Ltd.

• Debit: Pencil Point Ltd.; Credit: Purchases

J. Perry lent K. Micky $5,000 and issued the funds by cheque. What is the double entry to record this transaction in K. Micky’s books?

• A Debit: J. Perry; Credit: Bank

• B Debit: Bank; Credit: K. Micky

• C Debit: Bank; Credit: J. Perry

• D Debit: K. Micky; Credit: J. Perry