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Accounting for purchases, returns and discounts

Authored by Jacqui Barnard

Business

Professional Development

Used 1+ times

Accounting for purchases, returns and discounts
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8 questions

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1.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Which side is the brought down balance on the Payables Ledger Control Account

Debit

Credit

2.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

When transferring the balance from the Purchase Day Book to the PLCA, what value do you use?

Net

Gross

3.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

What financial information is contained in the Payables ledger (subsidiary)

Total owed of all receivables

Individual Gross balances of the supplier accounts

Net individual balances of the supplier accounts

4.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

How is the PLCA categorised in the accounts?

Asset

Expense

Liability

Capital

5.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Which side do you record a return in the Purchase Returns Account

Debit

Credit

6.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Is Prompt Payment Discount recorded as

Discount Received

Discount Payable

7.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

The discounts received day book is a book of prime entry that contains

Credit notes received from sellers for prompt payment discount

Credit notes received from buyers for prompt payment discount

Credit notes received from sellers for trade discount

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