What is the main function of book-keeping?

• communicating information

• interpreting information

• recording information

• summarising information

Which does not reduce the owner's capital?

• business expenses paid using a personal cheque

• cash withdrawn from the business bank account for personal use

• goods taken from inventory for personal use

• personal expenses paid using business cash

What would be recorded by a debit entry in a ledger account?

• a decrease in an asset

• an increase in a liability

• an increase in an asset

• an increase in capital employed

In April Meena and Ralph invoices for $170, $240, $125 and a credit note for $63. In the same month Ralph sent Meena a debit note for $70 and a cheque for $107.

What was the balance on Meena's account in Ralph's books in 1 May?

• $295 credit

• $295 debit

• $365 credit

• $365 debit

Tahir purchased goods on credit from Yasmin.

How did Yasmin record this?

• A

• B

• C

• D

Jane invoiced John for goods, $5000. John took a cash discount of 5% and sent Jane a cheque for the amount due.

Which entries will appear in Jane’s cash book?

• A

• B

• C

• D

After receiving her bank statement Lyn updated her cash book. Which items would reduce the overdrawn balance in the cash book?

1 bank interest received

2 credit transfer received

3 direct debit payment

• 1 and 2 only

• 1 and 3 only

• 1,2 and 3

• 2 and 3 only

The following account appeared in the ledger of Chan.

Which statement is correct?

• On 1 March Chan was owed $100 by Fu

• On 12 March Fu, purchased goods, $250, from Chan

• On 28 March Chan paid Fu $100 by cheque

• On 31 March Fu owed Chan $250

After preparing a trial balance it was found that a cheque, $300, received from Oliver, had been debited in Oliver’s account and credited in the bank account.

No other errors were found.

Which statement about the trial balance before correcting the error is correct?

• The credit column eas equal to the debit column

• The credit column was $300 more than the debit column

• The debit column was $300 more than the credit column

• The debit column was $600 more than the credit column

Ali’s financial year ends on 31 March. During the year ended 31 March 2019, Ali paid wages of $42 500. On 31 March 2019, $1400 wages were accrued.

Which journal entry records the transfer from the wages account to the income statement on 31 March 2019?

• A

• B

• C

• D