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WorksheetsPrinciple of Accounts
Total questions: 40
Worksheet time: 21mins
Which of the following is entered in the purchases account of a grocery?
Goods for sale
Duplicating mechanics
Typewriters
Office Stationary
Which of the following transaction should be debited in the cash account?
Bought goods for cash from J. Jones
Sold goods for cash
Paid office cleaner
Paid Loan Account
Patrick is to Join Dennis and Tony in partnership. Patrick brings to the partnership furniture valued at $3 000. and a motor van worth $5 000. how much would be Patrick's capital?
$4 000
$6 000
$8 000
$9 000
Work in progress January 1 $1 600
Work in progress December 31 $1 700
Cost of material used $3 000
Indirect expenses $3 200
Factory wages $5 000
from the above list of balances, what what is the cost of goods produced?
$8 000
$ 8 700
$11 100
$11 200
John Jones bought goods on credit from Henry Stokes for $15. The correct entry for recording this transaction in the book of Henry stokes is a
Credit entry in the name of Henry Stokes
Credit entry in the account of John Jones
Debit entry in the account of Henry Stokes
Debit entry in the account of John Jones
The recording and analysis of financial records is called
Accounting
Adjusting
Record keeping
Decision making
A trader started with a capital of $20,000 and used $12 000 of it to purchase building and plant. what is the new capital balance?
$32 000
$20 000
$12 000
$8 000
If a Buyer's invoice has been over stated the seller should send him a
Debit note
Corrected invoice
Credit note
Return voucher
Bad Debts _____________________$70
K.Lamb_________________________$70
How would the above journal entry posted in the ledger?
Debit Profit &Loss:
Credit Bad Debts
Debit K. Lamb;
Credit Profit & Loss
Debit K. Lamb;
Credit Bad Debts
Debit Bad Debit
Credit K. Lamb
Petty Cash Cashier information
Imprest amount ________________________$200
petty cash expense______________________$150
Received for stamps_____________________$10
what amount will be reimbursed to restore the imprest?
$40
$140
$150
$200
Debtors at the start of the year___________________$8 200
Cash received from debtors during the year_______$17 400
Debtors at the end of the year_____________________$9 300
the following information was provided by a trader, what was his credit sales for the year?
$16 300
$18 500
$25 600
$26 700
You are required to reconcile the debit balance in the cash book with the balance found in the bank statement. A credit entry recorded on the bank statement but not in the cash book should be?
Added to the Cash Book balance
Deducted from the Cash Book balance
Added to the balance from the Bank Statement
Deducted from the balance from the bank statement
In a partnership a partner, Mr. B. takes home merchandise costing $80 this amount this amount should be charged to
Merchandise/Purchase Account
Sales Account
Mr. B's Drawings Account
Mr. B's Capital Account
A trade discount can be described an an amount deducted from the
Catalogue price in determining the actual price
Selling price when the customer pays within a specific period
Invoice price because a large quantity of goods is bought
Selling price when an article has a flaw
A. Gill Purchase a Machine for $3 500 from Wayne and Co. Ltd. paying $1 500 in cash and the balance in 10 days. which is the correct procedure for recording this transaction?
Debit machinery a/c $3 500
credit cash a/c $2 000
Debit purchase a/c $3 500
Wayne and Co. Ltd. $3 500
Debit Machinery $3 500
credit cash a/c $1 500
Wayne and Co. Ltd $2 000
Debit Wayne and company a/c Ltd. $2 000
Debit cash a/c $1 500
Credit purchase a/c $3 500
The gross profit of a firm is $3 600;
bad debts $100; rent paid $120 which includes rent prepaid $20; general expense $80 discount received $110.
What is the net profit?
$3 400
$3 410
$3 430
$3 710
Item 22 refers to the following business of T&T Ltd.
opening stock cost (cost price)________________$3 500
closing stock cost (cost price)_________________$4 200
cost of sales__________________________________$ 34 650
What is the rate of stock turn over?
4.5
9
10
8
A trader sent Mr. Jones an invoice for $68 instead of $65. which note should the trader subsequently send to Mr. Jones?
Promissory note
Advice note
Debit note
Credit note
The excess of income over expenditure of a non-profit-making organization is called
Gross profit
Net profit
Accumulated fund
Surplus
which of the following is a prime cost in Manufacturing Accounts?
Depreciation
General expense
Direct wage
Production overhead
in preparing an income and expenditure Account, subscriptions paid in advance should be
Added this year and subtracted next year
Subtracted this year and added next year
Subtracted this year and entered into the receipts Payments Account next year
Added this year and entered into the receipts and Payment Account this year
Which of the following should not be used when calculating total wages?
Employees Register
Income Tax Return Forms
Pay Sheet
Time Sheet
use the information below to answer the following questions.
Stock_______________$2 200 Bank over draft $3 000
Machinery__________$4 000 Debtors $700
Creditors ___________$ 500 cash $5 000
what is the working capital?
$2 200
$4 200
$7 200
$8 200
A vehicle was bought on January 1, 2005 for $30 000. it is depreciated at the rate of 10% per annum using the diminishing method. what will the depreciated charge for year ended December 31, 2006?
$2 700
$2 970
$5 970
$6 000
Paul began his Photography business with $80 000 capital. Drawings during the year amount to $15 000 and his closing capital was $70 600 what was the amount of his net profit?
$5 600
$24 000
$55 000
$65 000
An asset purchased for $1 000 is depreciated at 10% per annum using the diminishing balance method. what would be the value of the asset at the beginning of the third year?
$800
$810
$900
$1 190
A form on which details of employees earnings and deductions for each pay period are assembled and summarized is frequently referred to as
Payroll Register
Payroll Distribution
Employees Earnings Records
Payroll
On January 01, 2005 a firm owed $60 for electricity. During the year $1 250 was paid towards electricity. on December 31, 2005 total electricity usage for the year amounted to$1 800. What is the amount owing for electricity for the year ending December 31, 2005?
$550
$610
$1 190
$1 800
The credit entry for of rent of $80 in the cash book is posted to the ledger as
A credit rent account $80
A Debit rent account $80
A Debit in the cash account
A credit in the cash account
Which of the following is not a book of original entry?
General Journal
Cash Book
Sales Day Book
Ledger
which of the following errors would NOT affect the profit of a business?
Purchase of a motor van debited in purchase account
sale of machinery credited in sales account
An amount credited to discount received instead of debited to discount allowed
Paul Mullings account debited instead of John's account
The sum of $375 Imprest cash was advanced to the petty cashier on February 1, during the month the following payments were made:
Travelling expenses $46; postage$20; and stationary$123.
on February 28 the petty cash was reimbursed and no further payments were made. what was the petty cash balance after reimbursement?
$186
$189
$375
$564
A firm has sales of $24 000 during the period and it adds a mark-up of 20%. what is the gross profit?
$4 000
$4 800
$6 000
$6 800
Which item should NOT have been included in the Appropriation account?
Debenture Interest $3 000
Statutory Reserve $4 000
Honorarium $6 000
Proposed Dividend $15 000
Which of the following items will be carried forward to the Appropriation Account in the new accounting period?
Undistributed income from last year $1 600
Statutory and special reserves, $7 500
Honorarium $6 000
undistributed income earned $5 100
Paul Mullings has just started a business. he owns a motor car valuing $20,000 and a truck valuing $45,000. he decides to bring the tuck into the business. in determining the total value of the business's fixed assets he does not include the value of the motor car.
Which accounting concept is Paul Mullings observing?
Money measurement
Separate Entity
Prudence
Matching
Paul Mullings and his Uncle are in Partnership with capitals of $6 000 and $4 000 respectively. Interest on capital is charged at the rate of 5% per annum. The firms net profit was $ 12 500.
what is Paul Mullings's hare of the net profit?
$4 800
$5 200
$6 000
$6 500
Which of the following list of assets are arranged in the order of liquidity?
Land, Machinery, stock , Debtors, Bank, cash
Land, Stock, Machinery, Cash, Debtors, Bank
Cash, Bank, Debtors, Stock, cash, Machinery, Land
Bank, Debtors, Stock, Cash, Land, Machinery
Mr. Mullings gross earnings is $9 500 per month, his income tax is 8% on gross earnings and national insurance contribution is $145 monthly. What is is net pay for June 2005?
$9 355
$8 595
$8 740
$7 687
From which of the following items in the Trading Account should Return Outwards be deducted?
Carriage outwards
Carriage inwards
Purchase
Sales
