Books of Prime Entry and Source Documents

A customer who bought goods on credit returns some of them to the supplier.

Which document will the customer send to the supplier?

• credit note

• debit note

• invoice

• statement

A credit note for $600 issued to a customer has been entered as an invoice for goods sold. The balance on the customer’s account after this entry is $14 200.

What is the correct balance on the customer’s account?

• $13 000

• $13 600

• $14 800

• $15 400

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

How will James record this transaction?

• debit bank $3,250

  debit discount allowed $150

  credit Tony $3,400

• debit Tony

  credit bank

  credit discount allowed

• debit bank

  debit discount received

  credit Tony

• debit Tony

  credit bank

  credit discount received

Fred keeps a petty cash book on the imprest system with an imprest of $200. The book is balanced monthly and the imprest is restored on the first day of the following month.

Fred’s petty cash expenses for June totalled $175.

Which entries record restoration of the imprest on 1 July?

• debit cashbook $175

  credit petty cashbook $175

• debit petty cashbook $175

  credit cashbook $175

• debit cashbook $200

  credit petty cashbook $200

• debit petty cashbook $200

  credit cashbook $200

On 1 September a trader purchased on credit goods with a list price of $1000. He was given a trade discount of 20 % and was allowed a cash discount of 5 % provided the account was paid in 30 days.

How much would the trader pay to the supplier on 28 September?

• $750

• $760

• $80

• $950

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

How will this transaction be recorded?

• debit bank

  credit cash

• debit cash

  credit bank

• debit bank

  credit drawings

• debit drawings

  credit bank

Where should the total of the purchases returns Day Book be posted?

• credit side of the cash book

• credit side of the purchases returns account

• debit side of the purchases returns account

• debit side of the purchases returns account

Which entry records a sale of goods on credit to Tahir?

• nominal/ general ledger debit cash

  Trade Receivable ledger credit sale

• nominal/ general ledger credit sales

  Trade Receivables ledger debit cash

• nominal/ general ledger credit sales

  Trade Receivables ledger debit Tahir

• nominal/ general ledger debit Tahir

  Trade Receivables ledger credit sales