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Accounting for a Trading Business #3

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

GST on purchases of assets or payments of expenses will always be a...

(a)  

2.

All of the following are recorded inclusive of GST except for?

a)

Accounts Payable

b)

Accounts Receivable

c)

Sales

d)

Bank

3.

If cash sales are $440 incl. GST, which statement is correct?

a)

Cr Sales 440

b)

GST = 44

c)

Dr Bank 440

d)

Dr Bank 400

4.

Identify the two transactions that include GST

a)

Drawings of inventories

b)

Drawings of cash

c)

Payment of wage

d)

Purchases of stationery

5.

Identify the error made in the General Journal.

a)

Inventories should be $680

b)

GST Clearing should be Cr $68

c)

Cost of goods sold needs to be included

d)

GST Clearing should be Dr $62

6.

Given the General Journal entry shown, identify the two correct statements regarding the Inventories ledger account.

a)

The ledger will show 900 in the debit column

b)

The ledger will show 900 in the credit column

c)

The particulars in the ledger will be Bank

d)

The particulars in the ledger will be GST Clearing

7.

Given the general journal identify the correct transaction.

a)

Owner paid for personal groceries using the business bank account $880

b)

Owner withdrew $880 from business bank account for personal use

c)

Owner took home inventories for his family use, $800 incl. GST

d)

Owner took home inventories for his family use, $880 incl. GST

8.

Identify the two correct statements given the general journal.

a)

The business purchased equipment for $1760 incl. GST

b)

The business purchased equipment for $1600 incl. GST

c)

The business purchased equipment for $800

d)

The business paid a deposit of $800

9.

Identify the two errors shown in the General Journal if this is to record a sales return of $550 incl. GST

a)

Cost of goods sold should be a Cr; inventories should be a Dr

b)

It should be "sales returns" instead of "sales"

c)

Sales should be $550 and Bank $500

d)

GST Clearing should be $55 and Sales should be $495

10.

Given the Sales Ledger account, identify the two correct statements.

a)

Credit sales of $800 incl. GST were made on May 22

b)

A sales return occurred on May 24, $220 incl. GST

c)

Gross profit earned on the sale on May 15 is $500

d)

Cash sales of $550 incl. GST were made on May 15