ITBK/POBC - Daybooks & Ledger transfers

From the discount received daybook, what entries will be made in the Payables ledger?

• Dr £38.65; Dr £12.70; Dr Vikki £9.30

• Cr £38.65; Cr £12.70; Cr Vikki £9.30

• Dr £46.38; Dr £15.24; Dr Vikki £11.16

• Cr £46.38; Cr £15.24; Cr Vikki £11.16

Answer explanation

Payables ledger holds accounts of individual suppliers. Discount received account is an income account, so it is credited. The debit goes to PLCA in the general ledger. This debit is later split split between the individual suppliers in payables ledger.

What will be the entries in the receivables ledger for the following?

• Dr Adam £252, Abdi £186, Cathy £588

• Dr Adam £210, Abdi £155, Cathy £490

• Cr Adam £210, Abdi £155, Cathy £490

• Cr Adam £252, Abdi £186, Cathy £588

Answer explanation

Receivables ledger holds accounts of individual customers. Sales returns is an expense, so it is a debit entry. The credit goes to RLCA in the general ledger. This credit is later split split between the individual customers in receivables ledger.

What will be the entries in the Payables ledger for the following?

• Cr Crewe £168, Faka £252, Alice £108

• Dr Crewe £140, Faka £210, Alice £90

• Dr Crewe £168, Faka £252, Alice £108

• Cr Crewe £140, Faka £210, Alice £90

Answer explanation

Payables ledger holds accounts of individual suppliers. Purchases is an expense, so it will have a debit entry. The credit goes to PLCA in the general ledger. This credit is later split between the individual suppliers in payables ledger.

What will be the entries in General ledger for the following?

• Dr RLCA £960, Cr VAT £160, Cr Sales £800

• Dr RLCA £800, Dr VAT £160, Cr Sales £960

• Cr RLCA £960, Dr VAT £160, Dr Sales £800

• Cr RLCA £800, Cr VAT £160, Dr Sales £960

Answer explanation

In the general ledger, the totals of the day's transactions are posted. Total net (sales) is credited in Sales account as an income; total VAT is credited in VAT account; and to offset these two entries and get the general ledger balanced, RLCA will be debited with total of the totals column. Remember, total debits and credits in the general ledger MUST be the same.

From the discount received daybook, what entries will be made in the General ledger?

• Dr PLCA £72.78; Cr VAT £12.13; Cr Dis Received £60.65

• Dr Total £72.78; Cr VAT £12.13; Cr Net £60.65

• Cr Total £72.78; Dr VAT £12.13; Dr Net £60.65

• Cr PLCA £72.78; Dr VAT £12.13; Dr Dis Received £60.65

Answer explanation

In the general ledger, the totals of the day's transactions are posted. Total net (Discount received) is credited in Discount received account as an income; total VAT is credited in VAT account; and to offset these two entries and get the general ledger balanced, PLCA will be debited with total of the totals column. Remember, total debits and credits in the general ledger MUST be the same.

From the discount allowed daybook, what entries will be made in the Receivables ledger?

• Dr Ben £13.50; Dr £29.16; Dr £19.62

• Dr Ben £11.25; Dr £24.30; Dr £16.35

• Cr Ben £13.50; Cr £29.16; Cr £19.62

• Cr Ben £11.25; Cr £24.30; Cr £16.35

What will be the entries in the Payables ledger for the following?

• Dr Amos £180, Lucy £120, Suzanne £330

• Dr Amos £216, Lucy £144, Suzanne £396

• Cr Amos £216, Lucy £144, Suzanne £396

• Cr Amos £180, Lucy £120, Suzanne £330

Answer explanation

Payables ledger holds accounts of individual suppliers. Purchase returns is an income account, so it is credited. The debit goes to PLCA in the general ledger. This debit is later split between the individual suppliers in payables ledger.

What will be the entries in the Receivables ledger for the following?

• Dr Brian £200, Lucy £150, Larry £450

• Cr Brian £240, Lucy £180, Larry £540

• Dr Brian £240, Lucy £180, Larry £540

• Cr Brian £200, Lucy £150, Larry £450

Answer explanation

Receivables ledger holds accounts of individual customers. Sales is an income, so it is a credit entry. The debit goes to RLCA in the general ledger. This debit is later split between the individual customers in receivables ledger.

What will be the entries in the General ledger for the following?

• Dr RLCA £1,026, Cr VAT £171, Cr Sales Returns £855

• Cr RLCA £1,026, Dr VAT £171, Dr Sales Returns £855

• Dr RLCA £855, Dr VAT £171, Cr Sales Returns £1,026

• Cr RLCA £855, Cr VAT £171, Dr Sales Returns £1,026

Answer explanation

In the general ledger, the totals of the day's transactions are posted. Total net (sales return) is debited in Sales returns account as an expense; total VAT is debited in VAT account; and to offset these two entries and get the general ledger balanced, RLCA will be credited with total of the totals column. Remember, total debits and credits in the general ledger MUST be the same.

What will be the entries in the General ledger for the following?

• Dr PLCA £528, Cr VAT £88, Cr Purchases £440

• Cr PLCA £528, Dr VAT £88, Dr Purchases £440

• Dr PLCA £440, Dr VAT £88, Cr Purchases £528

• Cr PLCA £440, Cr VAT £88, Dr Purchases £528

Answer explanation

In the general ledger, the totals of the day's transactions are posted. Total net (Purchases) is debited in Purchases account as an expense; total VAT is debited in VAT account; and to offset these two entries and get the general ledger balanced, PLCA will be credited with total of the totals column. Remember, total debits and credits in the general ledger MUST be the same.