CFAB - Accounting 1 - Revision - Chapter 4

The nominal ledger is a book of original entry. True or False?

• TRUE

• FALSE

In a T account, a debit entry would be made in the

• Left hand side

• Right hand side

The balances in the receivables ledgers when added should be equal to the receivable ledger control account.

• TRUE

• FALSE

A control account is a total account in the nominal ledger.

• TRUE

• FALSE

__________ figure shows  the total amount owed by all customers at a particular point in time.

• Trade receivables

• Trade payables

Together ledger accounting and double entry …

• Record directly all the source documents

• Summerise the transactions listed in the books of original entry

• Record all the entity’s credit transactions

• Record all the entity’s cash transactions

A debit entry in a T account will…

• Decrease an asset

• Decrease an expense

• Increase a liability

• Decrease capital

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

• £120

• £100

• £20

• Nil

Discount received from suppliers that is recorded initially in the cash book is debited to:

• Trade receivables

• Trade payables

• Discount received

• Purchases

Mabel's supplier has allowed her 5% discount for prompt payment of her account.  How should this be posted?

• DR Payables ledger control account; CR Discounts allowed 

• DR Discounts allowed; CR Payables ledger control account

• DR Payables ledger control account; CR Discounts received

• DR Discounts received; CR Payables ledger control account