oct nov 2018

Which statements about book-keeping and accounting are correct?

1. Accounting is performed periodically rather than daily

2. Accounting relies on having accurate book-keeping records

3. Book-keeping includes the preparation of financial statements

4. Book-keeping involves the recording of financial statements

• 1, 2 and 4

• 1 and 3

• 2, 3 and 4

• 2 and 4

Ava had $4,000 in the bank. She paid a supplier $575 by cheque in full settlement of $600 owing.

Which changes would take place within the accounting equation?

• A

• B

• C

• D

Winston returned goods to Hanif.

Which entries will Winston make in his ledgers?

• A

• B

• C

• D

Andy purchases goods from Charles.

The account of Charles in Andy's books for the month of September showed the following entries.

Which document would be issued by Charles on 8 September?

• cheque

• credit note

• debit note

• invoice

The following amounts were recorded in the bank columns of Tamir's cash book in September.

On 30 September the balance in the bank column of Tamir's cash book in September.

What was the credit balance on the bank column of the cash book on 1 September?

• $212

• $724

• $1,806

• $2,318

On 30 September 2018, Ahmed's bank statement showed a credit balance of $2,500. Ahmed found that a cheque issued for $90 and a deposit of $500 had not been included on the bank statement.

What was the balance at bank shown in Ahmed's cash book on 30 September 2018?

• $1,910

• $2,090

• $2,910

• $3,090

On 1 Septemeber 2018 Chan owed Tan $570. During September 2018 the following transaction took place.

Tan sold goods, $380, on credit to Chan

Chan returned goods, $150, to Tan

Chan paid Tan $500 by cheque

What was the balance brought down on Chan's account in Tan's ledger on 1 October 2018?

• $300 credit

• $300 debit

• $840 credit

• $840 debit

Lisa is a credit customer of Daniel. Her account in Daniel's ledger showed the following entries.

On 10 August Lisa returned goods, list price $140, subject to a 20% trade discount.

What was the debit balance on Lisa's account after this transaction?

• $150

• $170

• $178

• $198

Seema's financial year ends on 30 September, She rents premises at a monthly rent of $2,000. During the year ended 3- September 2018 she paid $26,000 rent.

Which journal entry will Seema make on 30 September 2018 to transfer the rent to the income statement?

• A

• B

• C

• D

Bashir maintains a provision for doubtful debts of 3% of the trade receivables at the end of the year.

On 31 August 2017 trade receivable amounted to $70,000

On 31 August 2018 trade receivables amounted to $73,000

Which double entry should Bashir make on 31 August 2018?

• A

• B

• C

• D