Sales Purchases and Returns

Omar returns goods bought on credit from Abdul.

How is this recorded in Omar’s ledger?

• account debited Abdul

  account credited Sales Returns

• account debited Sales Returns

  account credited Abdul

• account debited Abdul

  account credited Purchases Returns

• account debited Purchases Returns

  account credited Abdul

A business received cash from a credit customer (trade receivable/debtor) for goods sold on credit.

What entries record this transaction?

• debit cash

  credit trade receivable

• debit cash

  credit sales

• debit trade receivable

  credit cash

• debit trade receivable

  credit sales

Smith sold goods on credit to Green.

What entries will Green make to record this?

• account debited purchases

  account credited Smith

• account debited Smith

  account credited purchases

• account debited sales

  account credited Smith

• account debited Smith

  account credited sales

How is the purchase of goods on credit recorded?

• debit cash credit purchases

• credit cash debit purchases

• debit purchases credit supplier

• credit purchases debit supplier

What would be classed as drawings in the accounting records of a sole trader?

• cash withdrawn from bank for office use

• cash withdrawn from bank for petty cash in a till

• cash withdrawn from bank for trader’s business expenses

• cash withdrawn from bank for personal use

Which entries are made in X’s ledger to record the payment by a customer of money owing to X?

• account to be debited cash

  account to be credited trade payable

• account to be debited cash

  account to be credited trade receivable

• account to be debited trade payable

  account to be credited cash

• account to be debited trade receivable

  account to be credited cash

A trader buys a motor vehicle, for use in his business, on credit from J. Sango.

How is this recorded in the trader’s ledger?

• account to be debited bank

  account to be credited motor vehicle

• account to be debited motor vehicle

  account to be credited bank

• account to be debited motor vehicle

  account to be credited J Sango

• account to be debited J Sango

  account to be credited motor vehicle