Year 11 Revision - Errors

Which type of accounts are found in the receivables ledger?

• supplier

• customer

• purchases

• sales

What is the effect on the statement of financial position of a business paying creditors in full?

• decrease in capital

• Increase in capital

• decrease in liabilities

• increase in liabilities

A business purchases new office machinery on credit from PH Ltd.

How would this transaction be shown in the ledger?

• Account to be debited purchases

  Account to be credited office equipment

• Account to be debited PH Ltd

  Account to be credited office equipment

• Account to be debited office equipment

  Account to be credited purchases

• Account to be debited office equipment

  Account to be credited PH Ltd

In which book of original entry would bad/ irrecoverable debts written off be entered?

• cash book

• journal

• purchases book

• sales book

What would be recorded on the credit side of the trade payables ledger control account?

• credit purchases

• discount received

• payment to creditors

• returns outwards

A business records the purchase of a motor vehicle in the motor vehicle repairs

account. What type of error is this?

• commission

• original entry

• principle

• reversal

Which accounting concept is described in the statement ‘the business will continue in

existence for the foreseeable future’?

• business entity

• consistency

• going concern

• prudence

Entries in the purchases day book are made from?

• credit notes

• delivery notes

• invoices

• petty cash vouchers

Where should trade discounts given to customers be shown?

• cash book

• discounts allowed account

• invoice

• sales ledger

Which of the following would be regarded as capital expenditure for a motor vehicle business?

• purchase of a car for resale

• purchase of equipment for use in the business

• repair and redecoration of the business premises

• road tax and insurance for a delivery van