TQ1-CHAPTER 3 : SALES AND PURCHASES

Which of the following are accounting source documents?

• A- Journal and ledger

• B -Sales invoice and cash book

• C- Cash book and debit note

• D- Debit note and sales invoice

Which of the following is a book of prime entry?

• A- Payables ledger

• B- Sales day book

• C- General ledger

• D- Receivables ledger

Where a specific trade receivable is written off as bad, the corresponding credit is

expected to be in

• A- Purchases Account

• B- Profit or Loss Account

• C- Trade Payables Account

• D- Sales Ledger Control Account

Sales day book is best described as:

• A- a record of customers’ accounts

• B- part of double entry system

• C- An analysis of revenue into the daily sales figures

• D- the primary record of credit sales.

Which of the following source documents is received from a supplier of goods in

relation to goods returned by a customer?

• A- Returned invoice

• B- Return inward note

• C -Credit note

• D- Debit note

Source of information for preparing control accounts EXCLUDES

• A- Purchases journal

• B- Cash discount

• C- Sales day book

• D- Cash account

Which of the following pairs of balances would NOT be found on the same side of

a trial balance?

• A- Opening inventory and bad debts expense

• B- Discounts received and a bank overdraft

• C -Bad debts expense and interest income

• D- Purchases and opening inventory

Which of the following would NOT be posted to the credit of payables control

account?

• A- Total credit purchases

• B- Transfer of credit balances from receivables’ ledger

• C- Transfer of debit balances to receivables’ ledger

• D- Set-off contra

X Limited has a credit facility with a local trade supplier. An invoice for purchases

has been credited to the suppliers account and wrongly debited to the sales

account.

Which of the following journal entries will correct the error?

• A- Dr. Sales account Cr. Supplier account

• B- Dr. Supplier account Cr. Sales account

• C- Dr. Purchases account Cr. Sales account

• D- Dr. Sales account Cr. Bank account

Which of the following is NOT a source document used to update a cash book?

• A- Cheque written

• B- Payment voucher

• C- Receipts

• D- Debit note