MCQ accounting paper 1

Which transaction will increase both assets and capital by the same amount?

• A credit customer settled his account after deducting a cash discount.

• Goods were sold for cash at a price higher than their cost price.

• Rent received included an amount prepaid for the next accounting period.

• The owner repaid a business loan from his personal bank account.

On 1 June 2021, Sue’s capital account had a credit balance of $120 000. During the year ended 31 May 2022 she withdrew goods costing $1800. The loss for the year was $14 200. What was the credit balance on Sue’s capital account on 1 June 2022?

• $104 000

• $105 800

• $107 600

• $134 200

Bilal purchased goods on credit from Asim. Where should Asim record this transaction?

• Cash book and nominal ledger

• Cash book and sales ledger

• Nominal ledger and purchases ledger

• Nominal ledger and sales ledger

Abdul sells goods to Rekha on credit. Some goods were damaged in transit. Which document would Rekha send to Abdul?

• credit note

• debit note

• invoice

• statement of account

What is not shown on an invoice?

• amount of trade discount

• date payment made

• details of goods supplied

• terms of payment

On 1 September, Peter sent a cheque to his credit supplier, John. This was correctly entered in John’s books. On 10 September, the cheque was returned unpaid due to lack of funds. Which entries should be made in John’s books on 10 September?

• Dr. Bank
  Cr. Irrecoverable debt

• Dr. Bank
  Cr. Peter

• Dr. Irrecoverable debt
  Cr. Bank

• Dr. Peter
  Cr. Bank

Which entries should be made to post the monthly totals of the discount allowed and discount received columns of the cash book?

• A

• B

• C

• D

Jasvinder maintains a petty cash book using the imprest system. The monthly imprest of $100 is restored on the first day of each month. In September the petty cash book showed the following.

TOTAL EXPENSES = $83, TOTAL RECEIPTS = $7

How much cash did Jasvinder need to restore the imprest on 1 October?

• $24

• $76

• $83

• $100

Saddique’s trial balance failed to balance. The debit column totalled $12 250 and the credit column totalled $12 200. The following errors were discovered:
📌No entry had been made for cash sales, $150.
📌The total of the discount received account, $50, had been omitted from the trial balance.
What were the totals of the trial balance after the errors had been corrected?

• $12 250

• $12 300

• $12 350

• $12 400

$68 paid by credit transfer for insurance was entered in the accounting records as $86. Which double entry will correct this error?

• Debit: bank $18
  Credit: insurance $18

• Debit: bank $68
  Credit: insurance $68

• Debit: insurance $18
  Credit: bank $18

• Debit: insurance $68
  Credit: bank $68