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FA - Book Keeping

Total questions: 50

Worksheet time: 1hrs 15mins

Name
Class
Date
1.

Mr. X withdrawn goods from personal use Rs.10,000 is credited to .........................

a)

Drawing A/c

b)

Purchase A/c

c)

Sales A/c

d)

Goods A/c

2.

Mr. Y sold goods to Raj Costing Rs.10,000 at a profit of @20% on selling price. According to Accounting equation Profit on sales is :

a)

Added in Rs.2400 in Assets

b)

Added in Rs.2000 in capital

c)

Added in Rs.2500 in capital

d)

Added in Rs.2000 in Assets

3.

Samir who trades in electronic goods,gifted a television to his daughter.Will it be recorded in the books of accounts.

a)

Yes

b)

No

4.

"The owner invested cash BD100 in the business" Cr. side for this transaction is

a)

Capital

b)

Revenue

c)

Drawings

d)

Non of the answers

5.

"Performed service BD60, and received BD20". Dr side of this transaction in journal entries is

a)

Dr. Cash 20 and Dr. Account Receivable 40

b)

Dr. Account Receivable 40 only

c)

Dr. Account payable 40

d)

Dr. Cash only

6.

"Company purchased equipment for BD3000 cash" what is the Dr side for this transaction?

a)

Equipment

b)

Cash

c)

Capital

d)

Asset

7.

"The Company paid cash BD20 to creditor". It recorded in the general journal

a)

Dr. Account payable 20 , Cr. Cash 20

b)

Dr. Cash 20, Cr. Account payable 20

c)

Dr. Account Receivable 20, Cr. Cash 20

d)

Dr. Cash 20, Cr. Account receivable 20

8.

"Company received cash BD4,000 from customer, which was on account ". It recorded in the general journal

a)

Dr. Cash 4000, Cr. Account Receivable 4000

b)

Dr. Account Receivable 4000, Cr. Cash 4000

c)

Dr. Account payable 4000, Cr. Cash 4000

d)

None

9.

Normal Balance of Prepaid Insurance is

a)

Dr. & Cr.

b)

Cr. side

c)

Dr. side

d)

None of the answers

10.

Decrease in account receivable

Account receivable will be recorded in ........... of the journal entry

a)

Cr. side

b)

Dr. side

c)

Dr. & Cr.

d)

None of the answers

11.
What shall be the amount of Capital if cash is Rs. 5,000; Furniture Rs. 12,000; Stock Rs. 30,000 and Creditors Rs. 6,000.
a)
Rs. 53,000
b)
Rs. 47,000
c)
Rs. 41,000
d)
Rs. 40,000
12.
Which of the following accounts will be credited on giving cash donation ?
a)
Cash A/c
b)
Donation A/c
c)
Purchases A/c
d)
None of these
13.

Salaries due to the clerks i.e salaries outstanding Rs.50,000. The account to be credited is

a)

Salaries A/c

b)

Salaries outstanding A/c

c)

Cash A/c

d)

Clerks A/c

14.

Paid Rs.2,500 for repairing the office furniture. The entry to be debited is

a)

Repairs A/c

b)

Furniture A/c

c)

Wages A/c

d)

Expenses A/c

15.
Owner contributes office equipment to the business.
a)
Dr Cash at bank
     Cr Capital
b)
Dr Capital
     Cr Office eqmt
c)
Dr Office equipment
     Cr Capital
d)
Dr Office equipment 
     Cr Cash at bank
16.
Business paid cheque for rent expense.
a)
Dr Rent expense
     Cr Cash in hand
b)
Dr Rent expense
     Cr Cash at bank
c)
Dr Rent expense
Cr Cheque
d)
Dr Cash at bank
     Cr Rent expense
17.
Received interest income in business bank account.
a)
Dr Cash at bank
     Cr Interest income
b)
Dr Cash in hand 
     Cr Interest income
c)
Dr Cash at bank
 Cr Interest expense
d)
Dr Cash in hand
Cr Cash at bank
18.

The owner invests personal cash in business. will not affect which account

a)

Asset (I)

b)

Liabilties (I)

c)

Equity (NE)

19.

The owner withdraws business assets for personal use.

this will not affect which account

a)

Assets (I)

b)

Liabilities (D)

c)

Equity (D)

20.

Accounting equation can be written as

a)

Assets- liability= Capital

b)

Assets+ liability= Capital

c)

Assets= liability- Capital

d)

Assets= Capital

21.

The company receives cash from a bank loan , this will not affect which account

a)

Assets (I)

b)

Liabilities (D)

c)

Equity (D)

22.

The company repays the bank that had lent money, this will not affect which account

a)

Assets (I)

b)

Liabilities (D)

c)

Equity (D)

23.

The company purchases land by paying half in cash and signing a note ,this will not affect which account

a)

Assets (NE)

b)

Liabilities (I)

c)

Equity (I)

24.

The company repays the suppliers, this will not affect which account

a)

Assets (D)

b)

Liabilities (I)

c)

Equity (D)

25.

Which of the following documents should accompany a return of goods to a supplier?

a)

Debit note

b)

Remittance advice

c)

Purchase invoice

d)

Credit note

26.

Which of the following are books of prime entry?

1 Sales day book

2 Cash book

3 Journal

4 Purchase ledger

a)

1 and 2 only

b)

1, 2 and 3 only

c)

1 only

d)

All of them

27.

In which book of prime entry will a business record debit notes in respect of goods which have been sent back to suppliers?

a)

The sales returns day book

b)

The cash book

c)

The purchase returns day book

d)

The purchase day book

28.

Which of the following would be recorded in the sales day book?

a)

Discounts allowed

b)

Sales invoices

c)

Credit notes received

d)

Trade discounts

29.

Smith Co has the following transactions:

1. Purchase of goods on credit from T Rader: $450

2. Return of goods purchased on credit last month to T Rouble: $700 What are the correct ledger entries to record these transactions?

a)

Dr Purchases $450

Dr Purchase Returns $700

Cr Cash $450

Cr Trade Payables $700

b)

Dr Purchases $450

Dr Trade Payables $700

Cr Purchase Returns $1150

c)

Dr Purchases $450

Dr Trade Payables $250

Cr Purchase Returns $700

d)

Dr Purchases $450

Dr Purchase Returns $700

Cr Trade Payables $1150

30.
Paid Cash for water bill
a)
Cash (DR)
Water bill (CR)
b)
Water Bill (CR)
Cash (CR)
c)
Utilities Expense (DR)
Cash (CR)
d)
Both are debits
31.
Paid cash for supplies.
a)
Cash (DR)
Supplies (CR)
b)
Supplies (DR)
Cash (CR)
c)
Supplies (DR)
Accounts Payable(CR)
d)
They are both debits
32.

Credit balance of $100. Credit entry of $100. what's the balance

a)

0

b)

credit of 100

c)

credit of 200

33.

Are the following statements about debit entries true or false?

1 A debit entry in the cash book will increase an overdraft in the accounts.

2 A debit entry in the cash book will increase a bank balance in the accounts.

a)

Both true

b)

Both false

c)

1 true and 2 false

d)

1 false and 2 true

34.

A business sells $100 worth of goods to a customer, the customer pays $50 in cash immediately and will pay the remaining $50 in 30 days' time.

What is the double entry to record the purchase in the customer’s accounting records?

a)

Debit cash $50, credit payables $50, credit purchases $50

b)

Debit payables $50, debit cash $50, credit purchases $100

c)

Debit purchases $100, credit payables $50, credit cash $50

d)

Debit purchases $100, credit cash $100

35.

Tin Co purchases $250 worth of metal from Steel Co. Tin Co agrees to pay Steel Co in 60 days time.

What is the double entry to record the purchase in Steel Co’s books?

a)

Debit sales $250, credit receivables $250

b)

Debit purchases $250, credit payables $250

c)

Debit receivables $250, credit sales $250

d)

Debit payables $250, credit purchases $250

36.

How is the total of the purchases day book posted to the nominal ledger?

a)

Debit purchases, Credit cash

b)

Debit payables control, Credit purchases

c)

Debit cash, Credit purchases

d)

Debit purchases, Credit payables control

37.

Which one of the following statements about an imprest system of petty cash is correct?

a)

An imprest system for petty cash controls small cash expenditures because a fixed amount is paid into petty cash at the beginning of each period.

b)

The imprest system provides a control over petty cash spending because the amount of cash held in petty cash at any time must be equal to the value of the petty cash vouchers for the period.

c)

An imprest system for petty cash can operate without the need for petty cash vouchers or receipts for spending.

d)

An imprest system for petty cash helps with management of small cash expenditures and reduces the risk of fraud.

38.

Which one of the following provides evidence that an item of expenditure on petty cash has been approved or authorised?

a)

Petty cash voucher

b)

Record of the transaction in the petty cash book

c)

Receipt for the expense

d)

Transfer of cash from the bank account into petty cash

39.

Identify, by indicating the relevant box in the table below, whether each of the following statements is true or false.

1. A debit records an increase in liabilities.

2. A debit records a decrease in assets.

3. True False A credit records an increase in liabilities.

4. A credit records an decrease in capital

a)

False, True, False, False

b)

False, False, True, False

c)

False, False, False, False,

d)

False, False, False, True

40.

Which of the following would be recorded in the sales day book?

a)

Cash received

b)

Sales invoices

c)

Trade discounts

d)

Trade discounts

41.

What was the balance for trade payables in the trial balance at 1 October 20X0?

a)

$14,000 DEBIT

b)

$14,000 CREDIT

c)

$11,900 DEBIT

d)

$11,900 CREDIT

42.

What opening balance should be included in the following period's trial balance for motor vehicles – cost at 1 July 20X6?

a)

$271,450 DEBIT

b)

$271,450 DEBIT

c)

$186,450 CREDIT

d)

$186,450 DEBIT

43.

Identify, by indicating the relevant box in the table below, whether each of the statements is true or false.

1. A debit entry in the cash book will increase an overdraft in the accounts.

2. A debit entry in the cash book will increase a bank balance in the accounts.

a)

True, True

b)

True, False

c)

False, True

d)

False, False

44.

Assuming there are no other entries to be made, other than to balance off the account, what is the closing balance on the trade payables account?

a)

$474,485 DEBIT

b)

$575,235 DEBIT

c)

$474,485 CREDIT

d)

$575,235 CREDIT

45.

Which of the following statements is/are TRUE or FALSE?


1. Cash purchases are recorded in the purchases day book.

2. The sales day books is used to keep a list of invoices received from suppliers.

a)

Both statements are TRUE

b)

Both statements are FALSE

c)

Statement 1 is TRUE and statement 2 is FALSE

d)

Statement 1 is FALSE and statement 2 is TRUE

46.

Which ONE of the following statements does NOT describe a way in which an effective accounting system facilitates the provision of useful accounting information?

a)

By requiring authorisation in line with organisational policies

b)

By processing and recording transactions in accordance with accounting rules

c)

By preventing transactions from being processed inaccurately

d)

By enabling transactions to be recorded as necessary to permit preparation of financial statements

47.

At 30 November 20X5 Jenny had a bank loan of $8,500 and a balance of $678 in hand in her bank account.


How should these amounts be recorded on Jenny's opening trial balance at 1 December 20X5?

a)

DEBIT $7,822

b)

CREDIT $7,822

c)

CREDIT $8,500 and DEBIT $678

d)

DEBIT $8,500 and CREDIT $678

48.

A trial balance is made up of a list of debit balances and credit balances. Which of the following statements is correct?

a)

Every debit balance represents an expense.

b)

Assets are represented by debit balances.

c)

Liabilities are represented by debit balances.

d)

Income is included in the list of debit balances.

49.

A business sells $100 worth of goods to a customer, the customer pays $50 in cash immediately and will pay the remaining $50 in 30 days' time.


What is the double entry to record the purchase in the customer's accounting records?

a)

DEBIT cash $50, CREDIT payables $50, CREDIT purchases $50

b)

DEBIT payables $50, DEBIT cash $50, CREDIT purchases $100

c)

DEBIT purchases $100, CREDIT payables $50, CREDIT cash $50

d)

DEBIT purchases $100, CREDIT cash $100

50.

You are given the following information: Receivables at 1 January 20X3 $10,000 Receivables at 31 December 20X3 $9,000 Total receipts during 20X3 (including cash sales of $5,000) $85,000.


What are sales on credit during 20X3?

a)

$81,000

b)

$86,000

c)

$79,000

d)

$84,000