Accounting Chapter 7 - Past Year MCQ

Ali receives a cheque from Hassan, a debtor, in payment for goods purchased by Hassan on credit. Where will Ali enter this payment?

• cash book and sales ledger
• cash book and purchases ledger
• nominal ledger and sales ledger
• nominal ledger and purchases ledger

Which is both a book of prime (original) entry and a part of the ledger?

• cash book
• journal
• purchases journal D
• sales journal

The total of the purchases returns journal for September is $1400. How is this posted in the general ledger?

• credit purchases $1400
• debit purchases $1400
• credit purchases returns $1400
• debit purchases returns $1400

Which account is found in the purchases ledger?

• purchases
• purchases returns
• XY – a supplier
• WZ – a customer

Where are the personal accounts of trade customers found?

• purchases journal
• purchases (creditors) ledger
• sales journal sales (debtors) ledger
• sales (debtors) ledger

A business buys goods for cash which are intended for resale. In which book of prime (original) entry is the transaction entered?

• cash book
• journal
• purchases journal
• sales journal

Which transaction will be recorded in both the nominal (general) ledger and the purchases (creditors) ledger?

• purchase of goods by cheque
• purchase of stationery in cash
• return of goods by a customer
• return of goods to a supplier

Sara’s sales journal includes the following entry. To which accounts will this item be posted in Sara’s ledger?

• debit Ali | credit cash
• debit Ali | credit sales
• debit cash | credit Ali
• debit sales | credit Ali

The total of David’s purchases journal and purchase returns journal for April showed the following. How are these posted to David’s ledger?

• credit purchases $10 000 | debit purchase returns 900
• debit purchases $10 000 | credit purchase returns 900
• debit purchases $10 900
• credit purchase returns $9 100

Where are suppliers’ accounts found in a trader’s accounting records?

• purchases journal
• purchases ledger
• sales journal
• sales ledger