Financial Accounting Quiz

A debit entry in a fix asset account represents

• an increase in the fixed asset account

• a decrease in the fixed asset account

• a profit on disposal of the fixed asset

• a loss on disposal of the fixed asset

When bank charges are discovered in a bank statement, the adjustment is effected in the

• bank reconciliation statement

• cash book

• suspense account

• bank loan account

The double entry for interest on drawing by a partner is: debit

• Partner's Current Account

• Profit and Loss Account; Credit Interest Account

• Appropriation Account; Credit Partner's Current Account

• Interest Account; Credit Profit and Loss Account

A credit purchase of GH¢ 200 from Osae was posted to the account of Osei. This is an error of

• principle

• commission

• omission

• original entry

The net figure for debtors in the balance sheet is

• Le 47,025

• Le 46,550

• Le 45,600

• Le 45,500

The provision for doubtful debts to be charged to profit and Loss Account is

• Le 2,500

• Le 2,475

• Le 2,450

• Le 1,000

An office equipment bought for use was found to be defective and returned to the supplier. The subsidiary book to record this transaction is

• returns outward journal

• returns inwards journal

• purchase journal

• general journal

In a situation of incomplete records, profit is determined as

• closing capital - drawings + opening capital

• closing capital - drawings - opening capital

• closing capital + drawings - opening capital

• closing capital + drawings - opening capital

The documents which serves as the authority to incur expenditure in public sector is

• warrant

• vote

• budget

• voucher

A debit balance of GH¢ 420 on the purchases ledger control account means that the

• trade credit were overpaid by GH¢ 420

• trade creditors are owed GH¢ 420

• goods returned to trade creditors amounted to GH420