Double Entry Test - Grade 10 EM

Identify the incorrect statement:

• A

• B

• C

• D

A company buys goods on credit from the private fund of a proprietor. What will the effect be on assets and liabilities?

• A

• B

• C

• D

Out of the following, select the transaction that does not affect the equity?

• (1) Paying Rs.400 rate in cash.

• (2) Receiving Rs.500 additional income in cash.

• (3) Paying Rs.5000 to creditors by the owner from his own money.

• (4) Paying Rs.2000 accrued electricity expenses in cash.

Thisara business purchased a stock of goods at a cost of Rs. 20 000 on credit. Then 10% trade discount was deducted. Further 10% cash discount was received when paying money. The net impact on assets, when the above transactions of Thisara business was recorded in the accounting equation is

• 1) decreasing by Rs.1 800.

• 2) increasing by Rs.1 800.

• 3) decreasing by Rs.18 000.

• 4) increasing by Rs.20 000.

Thisara business purchased a stock of goods at a cost of Rs. 20 000 on credit. Then 10% trade discount was deducted. Further 10% cash discount was received when paying money. What is the correct double entry related to the cash payment of Thisara business?

• 1) Creditors a/c Dr. Rs. 18 000 ; Cash a/c Cr. Rs. 18 000

• 2) Creditors a/c Dr. Rs. 20 000 ; Cash a/c Cr. Rs. 20 000

• 3) Creditors a/c Dr. Rs. 18 000 ; Cash a/c Cr. Rs. 16 200; Discount received a/c Cr. Rs. 1 800

• 4) Creditors a/c Dr. Rs. 20 000 ; Cash a/c Cr. Rs. 18 000; Discount received a/c Cr. Rs. 2 000

While the sales account in the ledger of a business is .................... account and drawings account is .................... account. Select the answer that shows the correct terms to 1 and 2 in the above statement in correct order.

• an income, an equity

• an income, an expense

• a liability, an equity

• an equity, an expense

Out of the following, select the transaction that should be recorded in the General Journal.

• 1) Obtaining Rs.2 000 cash by the owner for personal use.

• 2) Writing off Rs.2 000 from the debtors as bad debts.

• 3) Purchasing a machine for Rs. 100 000 in cash for the use of business.

• 4) Purchasing a stock of goods of Rs. 10 000 to the business on credit.

The balance of the bank account as at 31st December 2023 was Rs. 14 100 (Unfavorable). The balance of the bank statement was different on that date due to the following reasons.

A - Cheques deposited but not realized were Rs.8 000

B - Direct remittances received to the bank from debtors were Rs.2 500

C - Insurance payment on standing orders was Rs.3 500

1-From the above, which caused the increase in the balance in the bank account than the balance in the bank statement?

2-The adjusted bank balance as of 31st December 2023 is,

Select the answer in the correct order

• 1- B & C; 2-13,100 (Credit)

• 2- 1- A & C; 2-15,100 (Credit)

• 3- 1- B & C; 2-13,100

• 4- 1- A & C; 2-15,100

The amount of petty cash imprest of Sarana's business was Rs.3 000. The petty cash expenses during the month of September 2017 was Rs.2 800. On 1st of October Rs.3 300 has been reimbursed. Select the correct statement with regard to the petty cash of Sarana's business.

• The value of the petty cash imprest for the month of October is Rs.3 500.

• The balance with the petty cashier as at 30th September is Rs.500.

• The petty cash expenses for the month of September is Rs.3 300.

• The increase of the petty cash imprest from October is Rs.300.

Purchasing journal is a

• ledger account.

• prime entry book.

• source document.

• financial statement.