Accounts Quiz -2

The amount mentioned in the discount column on the debit side of a cashbook represents:

• Trade discount allowed or discount expense

• Cash discount allowed or discount expense

• Trade discount received or discount income

• Cash discount received or discount income

A cheque is received from a creditor and paid into the bank on the same day. How will this transaction be recorded in the cashbook?

• It will be recorded in the cash column of the cashbook

• It will be recorded both in the cash and bank column of the cashbook

• It will be recorded in the bank column of the cashbook

• None of the above

Which of the following statements about a cashbook is not true?

• It is a journalised ledger

• It is a double purpose book

• It is a dual book

• It records liabilities

Which one of the following transactions will be recorded in the cashbook as a contra entry?

• Cash is withdrawn from the bank for office use

• Cash is deposited in a company's bank account

• A cheque that was received earlier is deposited into the company's bank account

• All of the above

Another name for the debit side of a cashbook is ________:

• Receipts side

• Income side

• Expense side

• Payment side

In a cashbook, a contra entry is recorded on the __________:

• Debit and credit side of a cashbook

• Debit side of a cashbook

• Credit side of a cashbook

• Not recorded in the cashbook

A cheque paid by a business for fuel for the delivery vehicle was recorded in the books of the business. A cheque paid by the business owner for fuel for his motorcycle was not recorded in the books of the business. Which accounting principle was applied?

• Accounting entity

• Going concern

• Materiality

• Money measurement

Which group of items appears in a purchases ledger control account?

• bad debts, receipts from credit customers, returns outwards

• credit purchases, discount allowed, returns inwards

• credit purchases, payments to credit suppliers, returns outwards

• discount received, payments to credit suppliers, returns inwards

Which total is shown by the closing balance on a purchases ledger control account?

• cash purchases

• credit purchases

• trade payables

• trade receivables

Which will not appear in a sales ledger control account?

• discounts allowed

• interest charged on overdue accounts

• provision for doubtful debts

• sales returns