Cashbooks and Petty Cashbooks 2

What is a cheque counterfoil used for?

• to pay a cheque into the bank account

• to pay for goods purchased by cheque

• to record a cheque payment in the cash book

• to record a cheque received in the cash book

Farouk sells goods on credit. A cheque from Khalid, a credit customer, was dishonoured by the bank.

How should Farouk record this?

• account to be debited bank

  account to be credited Khalid

• account to be debited irrecoverable debts

  account to be credited Khalid

• account to be debited Khalid

  account to be credited bank

• account to be debited Khalid

  account to be credited irrecoverable debts

Which statement is correct?

• The accountant prepares the trial balance and the book-keeper prepares the financial

  statements.

• The accountant writes up the journals and the book-keeper writes up the ledger accounts.

• The book-keeper writes up the journals and the accountant prepares the trial balance.

• The book-keeper writes up the ledger accounts and the accountant prepares the financial

  statements.

Why does a supplier offer trade discount?

• to avoid irrecoverable debts

• to encourage bulk buying

• to encourage payment in cash

• to reward prompt payment

Ann maintains a petty cash book using the imprest system.

Which statement is not correct?

• A petty cash book can be maintained by a junior member of staff.

• At any time petty cash vouchers plus the petty cash balance are equal to the imprest

  amount.

• The chief cashier is not asked continually for small sums of money.

• The number of entries in the cash book increases because of the large number of small cash

  payments.

A standing order paid for rent has not been entered into the accounting records of a business.

Which statement is correct?

• Because the payment was made automatically, no additional entries are required in the

  accounting records.

• Because the payment was made automatically, only an entry in the rent account is required.

• Entries are required in the cash book and in the bank reconciliation statement.

• Entries are required in the cash book and in the nominal (general) ledger.

Jane purchased goods and paid by credit transfer.

How should this be recorded in Jane’s accounting records?

• account to

  be debited bank

  account to

  be credited purchases

• account to

  be debited purchases

  account to

  be credited bank

• account to

  be debited purchases

  account to

  be credited trade payable

• account to

  be debited trade payable

  account to

  be credited purchases

Where are the accounts of credit suppliers maintained?

• purchases Day Book (journal)

• purchases ledger

• sales Day Book (journal)

• sales ledger