Edexcel Term 1 Year 10 Quizz

A sole trader withdraws cash from his business bank account for his personal use.

How would this be recorded in the business’s ledger?

• Account to be debited bank

  Account to be credited capital

• Account to be debited bank

  Account to be credited drawings

• Account to be debited capital

  Account to be credited bank

• Account to be debited drawings

  Account to be credited bank

Which of these accounts has a credit balance?

• discount allowed

• discount received

• purchases

• sales returns

Which statement is incorrect?

• assets = liabilities + capital

• capital = assets – liabilities

• capital – liabilities = assets

• liabilities = assets – capital

Which error would be disclosed by the preparation of a trial balance?

• receipt by cheque from R Jones, £67, entered in the account of S Jones as £76

• purchase of stock (inventory) on credit, £290, omitted from the books

• sale of goods on credit for £200 entered on both sides of the ledger as £20

• wages account and sales account both overcast by £650

A business sells goods for cash. What are the entries in the books of the seller?

• Debit cash

  Credit sales

• Debit cash

  Credit trade receivables (debtors)

• Debit sales

  Credit cash

• Debit trade receivables (debtors)

  Credit cash

What is the main purpose of preparing a trial balance?

• balance the accounts in the ledger (ledger accounts)

• calculate the amount of profit or loss made

• ensure the statement of finacial position is correct

• ensure the arithmetical accuracy of the ledger (ledger accounts)

Which of the following errors would be revealed by preparing a trial balance?

• an amount received from J Smith, a debtor, was entered in the account of J Smyth

• an invoice received from a creditor for credit purchases was not entered in the accounts

• a payment received from a trade receivble (debtor) for £321 was entered in the cash book as £231 and trade receivable account

• a payment of £761 to a creditor (trade payable) was not posted to their account (the trade payable account)

A sole trader has included the purchase of a motor vehicle for private use as a business asset.

Which double entry would correct this error?

• Account to be debited capital

  Account to be credited motor expenses

• Account to be debited drawings

  Account to be credited motor vehicles

• Account to be debited motor expense

  Account to be credited capital

• Account to be debited motor vehicles

  Account to be credited drawings