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TT2 IGCSE Accounting equation

Total questions: 15

Worksheet time: 5mins

Name
Class
Date
1.

Which of the following is incorrect?

a)

A = L+OE

b)

L = OE+A

c)

OE = A-L

d)

A = OE+L

2.

Indicate which two are correct.

a)

Assets increase on the debit side

b)

Assets increase on the credit side

c)

Assets decrease on the debit side

d)

Assets decrease on the credit side

3.

Indicate which two are correct.

a)

Owner's equity increases on the debit side

b)

Owner's equity increases on the credit side

c)

Owner's equity decreases on the debit side

d)

Owner's equity decreases on the credit side

4.

Indicate which two are correct.

a)

Liabilities increase on the debit side

b)

Liabilities increase on the credit side

c)

Liabilities decrease on the debit side

d)

Liabilities decease on the credit side

5.

Jason introduced capital of $40 000 into the business bank account.

a)

Debit bank + credit Owner's equity

b)

Debit owner's equity + credit bank

6.

Purchased premises, $25 000, by cheque.

a)

Debit bank + credit premises

b)

Debit premises + credit bank

7.

Purchased goods, $9500, on credit from Lynne.

a)

Debit purchases + credit Lynne

b)

Debit Lynne + credit purchases

8.

Cash sales, $320

a)

Debit sales + credit cash

b)

Debit cash + credit sales

9.

Jason (owner) took goods ,$100, for own use.

a)

Debit bank + credit drawings

b)

Debit purchases + credit drawings

c)

Debit drawings + credit bank

d)

Debit drawings + credit purchases

10.

Sold goods, $1460, on credit, to Paul.

a)

Debit purchases + credit Paul

b)

Debit Paul + credit purchases

11.

Paid Lynne (trade payable) $8000, on account, by cheque.

a)

Debit Lynn + credit bank

b)

Debit bank + credit Lynn

12.

Paul (trade receivable) returned goods, $120.

a)

Debit sales returns + credit Paul

b)

Debit Paul + credit sales returns

13.

Received a long term loan, $10 000, by cheque, from ABC Finance.

a)

Debit Loan: ABC Finance + credit bank

b)

Debit bank + credit loan:ABC Finance

14.

Paid assistant’s wages in cash, $200.

a)

Debit bank + credit wages

b)

Debit wages + credit bank

c)

Debit cash + credit wages

d)

Debit wages + credit cash

15.

Paul (trade receivable) paid the amount outstanding by cheque.

a)

Debit Paul + credit bank

b)

Debit bank + credit Paul