NEW
Font size
WorksheetsTT4 IGCSE Accounting Chapter 1&2 recap
Total questions: 25
Worksheet time: 49mins
Which statements about book-keeping and accounting are correct?
- 1 - Accounting is performed periodically rather than daily.
- 2 - Accounting relies on having accurate book-keeping records.
- 3 - Book-keeping includes the preparation of financial statements.
- 4 - Book-keeping involves the recording of financial transactions.
1, 2 and 4
1 and 3
2, 3 and 4
2 and 4
A trader invested $4000 into the business. $2000 was used to pay a credit supplier. The rest of the money was paid into the business bank account.
What changes would take place within the accounting equation?
A –$2000, OE –$4000, L +$2000
A +$2000, OE +$2000, L no effect
A +$2000, OE +$4000, L –$2000
A +$4000, OE +$4000, L no effect
Wilma bought 55 items from Margot at a list price of $40 each, subject to a 15% trade discount.
Wilma later returned 25 items as they were faulty.
Which document did Margot issue to Wilma for the returned items?
credit note for $850
credit note for $1000
debit note for $850
debit note for $1000
The bank agreed to allow Dan an overdraft with a limit of $500.
What did this mean?
A sum of $500 would be transferred into Dan’s account by the bank.
All cheques issued by Dan would be paid by the bank.
Cheques issued by Dan would be paid by the bank provided the account was not overdrawn by more than $500.
Only cheques issued by Dan for less than $500 would be paid by the bank if there was not enough money in the account.
On 30 September 2018, Ahmed’s bank statement showed a credit balance of $2500. Ahmed found that a cheque issued for $90 and a deposit of $500 had not been included on the bank statement.
What was the balance at bank shown in Ahmed’s cash book on 30 September 2018?
$1910
$2090
$2910
$3090
On 1 September 2018 Chan owed Tan $570. During September 2018 the following transactions took place.
- Tan sold goods, $380, on credit to Chan
- Chan returned goods, $150, to Tan
- Chan paid Tan $500 by cheque
What was the balance brought down on Chan’s account in Tan’s ledger on 1 October 2018?
$300 credit
$300 debit
$840 credit
$840 debit
Ava had $4000 in the bank. She paid a supplier $575 by cheque in full settlement of $600 owing.
Which changes would take place within the accounting equation?
A–$600, OE –$25, L –$625
A–$600, OE +$25, L –$625
A–$575, OE +$25, L –$600
A+$575, OE –$25, L +$600
What increases owner’s capital?
bank loan extended from five to ten years
purchase of inventory on credit
purchase of machinery by cheque
transfer of vehicle to business from private use
Which account always has a credit balance?
capital account
cash account
drawings account
premises account
Kamal purchases and sells goods on credit. Where does he maintain the accounts of his credit suppliers?
purchases journal
purchases ledger
sales journal
sales ledger
Ali sold goods, $600, on credit to Malik on 19 October.
The terms of the sale were 2.5 % cash discount if payment was received within 14 days.
Payment was received on 25 October.
How would Ali record this discount?
debit: discount allowed - credit: Malik
debit: discount received - credit: Malik
debit: Malik - credit: discount allowed
debit: Malik - credit: discount received
Winston returned goods to Hanif. Which entries will Winston make in his ledgers?
Debit Entry:
- Ledger: general
- Account: Hanif
Credit Entry
- Ledger: purchases
- Account: purchases returns
Debit Entry:
- Ledger: general
- Account: purchases returns
Credit Entry:
- Ledger: purchases
- Account: Hanif
Debit Entry:
- Ledger: purchases
- Account: Hanif
Credit Entry:
- Ledger: general
- Account: purchases returns
Debit Entry:
- Ledger: purchases
- Account: purchases returns
Credit Entry:
- Ledger: general
- Account: Hanif
Which task would an accountant perform?
drawing up a trial balance
entering transactions in the ledger
preparing financial statements
writing up the cash book
Which statement describes a purpose of accounting?
to check the arithmetical accuracy of the double entry
to ensure that all transactions are recorded
to know the balances on individual customers’ and suppliers’ accounts
to provide a calculation of profit
Amina returned goods to Nadia. Which document did Amina issue?
credit note
debit note
invoice
statement of account
A credit customer buys goods with a list price of $1000. Trade discount is 30% and cash discount is 10%.
Which amount is entered in the customer’s account to record the sale?
$600
$630
$700
$900
On 2 September Tumelo purchased goods on credit, list price $4200, less trade discount of 20% and a cash discount of 2% if the invoice was paid within 30 days.
On 5 September Tumelo returned one-third of the goods to the supplier.
Which amount did Tumelo enter in his purchases returns journal?
$1092
$1120
$1372
$1400
What is the purpose of accounting?
to ensure the cash book balance agrees with the bank statement
to know how long trade receivables take to pay
to prepare the financial statements of the business
to write up all the ledger accounts
What is the purpose of book-keeping?
to interpret the double entry records
to prepare financial statements at regular intervals
to record all the financial transactions of the business
to summarise the financial position of the business
What are assets?
items that are bought for long-term use by a business
items that are expected to be turned into cash in the near future
items that are owned by or owed by a business
items that are owned by or owed to a business
Karim issued an invoice, a credit note and a receipt.
What has happened?
Karim purchased goods and paid the supplier immediately.
Karim purchased goods on credit, made returns to the supplier and paid the balance due.
Karim sold goods and received immediate payment from the customer.
Karim sold goods on credit, received returns from the customer and received the balance due.
A trader’s purchases on credit for April amounted to $2000. These purchases were subject to a trade discount of 10% and also a cash discount of 5% for accounts paid within 30 days.
How much was entered in the purchases journal?
$1700
$1800
$1900
$2000
Which is part of the double entry system?
cash book
general journal
sales journal
trial balance
Which accounts would appear in a purchases ledger?
- 1 - carriage inwards
- 2 - purchases
- 3 - purchases returns
- 4 - Sadie, a credit supplier
1, 2 and 3
2 and 3 only
2 only
4 only
On 1 February Ahmed purchased goods on credit from Zaffar. He returned these goods on 8 February.
How did Zaffar record the transaction of 8 February?
account debited: Ahmed
account credited: purchases returns
account debited: Ahmed
account credited: sales returns
account debited: purchases returns
account credited: Ahmed
account debited: sales returns
account credited: Ahmed
