The purchases day book is best described as _____

• Containing suppliers’ accounts

• Part of the double entry system

• A list of purchases bought for cash

• A list of purchases bought on credit

The Sales day book does not contain _____

• Credit sales which eventually turn out to be bad debts

• Credit sales made without deduction of trade discount

• Credit sales made to overseas customers

• Cash sales

The debit notes sent out by us are entered in our _____

• Returns outwards day book

• Returns inwards day book

• Returns outwards account

• Purchases account

A machine sold on credit to Ray should be recorded in the T-accounts as _____

• Dr Machine Cr Cash

• Dr Machine Cr Ray

• Dr Cash Cr Ray

• Dr Ray Cr Machine

What transaction is recorded in the accounts below?

• Return of machine to Docs. Inc.

• Return of machine by Docs. Inc.

• Purchase of machine on credit from Docs. Inc.

• Sale of machine on credit to Docs. Inc.

Which of the following are INCORRECT?

(i) Bought equipment on credit from C. Lee

Dr Equipment Cr C. Lee

ii) Introduced extra capital in cash

Dr Capital Cr Cash

iii) Paid a creditor, C. Brown, by cheque

Dr C. Brown Cr Bank

iv) F. Grant lent us $1 000 in cash

Dr F. Grant: Loan Cr Cash

• (ii) and (iv) only

• (ii) and (iii) only

• (i) and (iii) only

• (iii) and (iv) only

Which of the following are CORRECT?

i) Returned some equipment to C. Lee

Dr Equipment Cr C. Lee

ii) Sold office fixtures for cash

Dr Cash Cr Office Fixtures

iii) Repaid loan from F. Grant by cheque

Dr Bank Cr F. Grant - Loan

iv) Bought van on credit from Sunset Mota

Dr Van Cr Sunset Mota

• (i) and (iv) only

• (ii) and (iv) only

• (ii) and (iii) only

• (i) and (iii) only

What is the balance on the following account on June 30 20X1?

• a debit balance of $601

• a credit balance of $1 129

• a credit balance of $528

• Nil

Which of the following best describes a Trial Balance?

• Shows all the assets balances

• A list of balances on the books

• The final accounts in the books

• Discloses the financial position of the business

When should the Trial Balance totals differ?

• Only when it is drawn up by the accountant

• If drawn up half way through the financial year

• When drawn up before the profit and loss account is prepared

• Never