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WorksheetsAdvanced Bookkeeping - Revision
Total questions: 11
Worksheet time: 3hrs 45mins
What is the accounting equation?
Assets - Liabilities = Capital
Assets + Liabilities = Capital
Assets - Liabilities - Capital
Assets + Liabilities + Capital
A business makes a cash purchase for goods paying from the bank. What is the correct double entry for this transaction?
DR Bank, CR Cash Purchases
DR Cash Purchases, CR Bank
DR Purchase Ledger Control, CR Bank
DR Sales, CR Bank
What is the purpose of a business using a non-current asset register?
When purchasing a non-current asset, from the options below, select which items can usually be classified as capital expenditure costs
Cost of the asset
Installation and testing
Repairs to premises
Delivery cost of the non current asset
Insurance for the new asset
Which of the following costs are normally classified as revenue expenditure?
Purchase of a new vehicle
Fuel for vehicles
Building extension cost
Yearly depreciation charge for an asset
Redecoration of an office
In accounting, when we sell or part-exchange an asset, this is usually known as a?
(a)
Who is the appropriate person in a business to give permission for capital expenditure or a new business vehicle
The driver of the vehicle
The bank manager of the business
The owner of the business
The supervisor of the business
What type of financing method usually involves passing of the asset to the user at the end of the agreement?
Hire purchase
Finance lease
Cash purchase
Loan
A machine has been purchased for £10,000 plus VAT (the VAT was reclaimed). The machine is to be depreciated using the diminishing balance method at 20% per annum.
What will be the depreciation charge in year 2 of ownership?
£1,600
£2,000
£1,920
£2,400
A business purchased a van for £20,000 six years ago, and the accumulated depreciation for this van shows a balance of £12,000. It has recently sold the van for £10,000 and the gain on this vehicle was £2,000.
What double-entry transaction would remove the original cost of the van from the accounts?
Dr Van at Cost £20,000, Cr Depreciation Charge £20,000
Dr Accumulated Depreciation £20,000, Cr Van at Cost £20,000
Dr Disposals £10,000, Cr Van at Cost £10,000
Dr Disposals £20,000, Cr Van at Cost £20,000
Which errors do not cause the trial balance to be unbalanced?
Error of omission
Payment of rent posted only to the rent account (no bank entry)
Error of original entry
Selling expenses have been reversed
The sales day book totals have been posted incorrectly
