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Accounting For A Trading Business #1

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Identify the transaction that matches the general journal entry shown.

a)

Purchased equipment $1100 incl. GST

b)

Purchased supplies $1100 incl. GST on credit

c)

Purchased supplies $1100 incl. GST cash

d)

Purchased supplies $1000 incl. GST cash

2.

Identify the expense below that does not have GST

a)

Electricity

b)

Interest Expense

c)

Insurance

d)

Advertising

3.

Calculate the correct values for Electricity and Bank.

a)

Electricity $2000 and Bank $2200

b)

Electricity $2200 and Bank $2400

c)

Electricity $20 and Bank $220

d)

Electricity $2200 and Bank $2000

4.

All of the following statements are correct, except for?

a)

Businesses can claim back GST on any purchases of supplies and equipment

b)

Businesses owe the ATO GST collected on service fees

c)

GST Clearing can either be an asset or a liability

d)

GST Clearing is always a liability

5.

The entry on May 15 was posted in error. It should have been for insurance, not wages. Identify the entry needed to correct this error.

a)

Dr Insurance $3000, Dr GST Clearing $300 & Cr Wages $3300

b)

Dr Insurance $3300 & Cr Wages $3300

c)

Dr Wages $3300 & Cr Insurance $3300

d)

Dr Bank $3300 & Cr Wages $3300

6.

All of the following statements are correct, except for?

a)

Service businesses purchase supplies

b)

Trading businesses purchase inventories

c)

Service businesses earn trading revenue

d)

Trading businesses earn sales

7.

Purchased supplies on credit from XZE Supplies $4400 incl. GST. Calculate the value of GST.

a)

$40

b)

$400

c)

$440

d)

$444

8.

Given the GST Clearing Ledger account shown, calculate the amount paid for Electricity excluding GST.

a)

$50

b)

$500

c)

$550

d)

$555

9.

Given the GST Clearing Ledger account shown, calculate the amount paid for Supplies including GST.

a)

$15

b)

$165

c)

$1500

d)

$1650

10.

Given the GST Clearing Ledger account shown, calculate the amount paid for Supplies excluding GST.

a)

$10

b)

$110

c)

$1000

d)

$1100