Chapter 4& 5: ledger accounting & preparing FS

the nominal ledger:

• is the record of all transactions not directly recorded in the accounting system

• is used to record only transactions relating to receivables

• is used to record only transactions relating to payable

• is the record of an entity's financial transactions

a debit entry in a T account will

• decrease an asset

• decrease an expense

• increase a liability

• decrease capital

a credit entry in a T account will

• decrease an asset

• increase an expense

• decrease a liability

• decrease capital

when a credit customer pays a invoice for £120 including VAT at 20%, the credit entry in the VAT ledger account will be

• £120

• £100

• £20

• nil

early settlement discounts received from the supplier will:

• decrease purchase

• decrease sales

• increase trade payable

• increase trade receivables

when petty cash is topped up to the imprest amount, the credit entry is made to

• the petty cash book

• trade receivables

• cash at bank account

• trade payable

individual credit customer accounts are kept in which ledger

• payable ledger

• trade receivables

• receivables ledger

• nominal ledger

which two of the following items will be listed as a credit balance on the trial balance

• trade payable

• purchase

• sundry expense

• capital

• drawings

Mary has a net loss of £400. this should be

• credited to the profit and loss account and debited to the capital account

• debited to the profit and loss account and credited to the capital account

• credited to the profit and loss account and debited to the drawing account

• debited to the profit and loss account and credited to the drawing account

the credit side of a journal may

• increase sales

• increase expense

• decrease trade payable

• increase trade receivables