Edexcel Year 10 Questions

A trader instructs his bank to make a payment of £100 to the electricity company every month. Which term describes this instruction?

• credit transfer

• direct debit

• personal cheque

• personal cheque

Which of the following is recorded on the credit side of a trade payables ledger control account?

• credit purchases

• discount received

• payments to creditors

• purchases returns

Which of the following is a source of information for a trade receivables ledger control account?

• petty cash book

• purchases book

• purchases returns book

• sales day book

A business buys goods for cash. What are the entries in its books for this transaction?

• account debited cash

  account credited purchases

• account debited cash

  account credited supplier

• account debited purchases

  account credited cash

• account debited supplier

  account credited cash

Mr Patel buys goods for resale from Mr Singh on credit. The goods are unsuitable and

Mr Patel returns them without paying for them. Which document should

Mr Singh issue on receipt of the returned goods?

• credit note

• debit note

• purchase invoice

• receipt

Which of the following accounts always has a debit balance?

• Capital

• Purchases

• Purchase returns

• Sales

What does the term ‘working capital’ mean?

• Capital/ equity invested by the owner(s)

• Capital less drawings

• Current assets less current liabilities

• Non current assets less current assets

A petty cash system operates on the imprest system with a float of £350. If £275 is spent in the period, how much will be reimbursed at the end of the period?

• £75

• £275

• £350

• £425

What does a credit balance of £500 in the account of R Jones in the books of T Richards mean?

• Jones owes Richards £500

• Jones has purchased goods from Richards costing £500

• Richards owes Jones £500

• Richards has paid Jones £500

A business purchases a new machine on credit for use in the business. In which book will the transaction be entered?

• Cash book

• Journal

• Purchases day book

• Sales day book