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WorksheetsTOPIC_2_Double entry accounting
Total questions: 50
Worksheet time: 25mins
Land & Building is one of Non Current Liabilities.
TRUE
FALSE
Discount received is one of examples of
Expenses
Revenue
A decrease to Accounts Payable is a
debit
credit
A decrease to Accounts Payable is a
debit
credit
Discount received is one of examples of
Expenses
Revenue
A decrease to Accounts Payable is a
debit
credit
An asset account is increased with a _________.
debit
credit
An increase to Utilities Expense is a ____________.
debit
credit
The normal balance for Building is a __________.
debit
credit
An increase to a revenue account is a ____________.
debit
credit
The Right-hand side of a "T" account is called _______.
debit
credit
The accounting equation is defined as _______.
ASSETS + LIABILITIES = CAPITAL
ASSETS - LIABILITIES = CAPITAL
ASSETS = LIABILITIES + CAPITAL
ASSETS = LIABILITIES - CAPITAL
The business owner, Jack invested $9000 into the business bank account. What is the double entry to record this transaction?
Debit Bank and Credit Capital
Debit Capital and Credit Bank
Debit Capital and Credit Jack
Debit Jack and Credit Bank
Sold equipment by cash $700. What is the double entry to record this transaction?
Debit Cash and Credit Sales
Debit Cash and Credit Equipment
Debit Equipment and Credit Cash
Debit Sales and Credit Equipment
Sold goods on credit to Mark. What is the double entry to record this transaction?
Debit Cash and Credit Sales
Debit Mark and Credit Sales
Debit Sales and Credit Mark
Debit Cash and Credit Sales
Bought goods worth $4000 on credit from Ben. What is the double entry to record this transaction?
Debit Purchases and Credit Cash
Debit Cash and Credit Purchases
Debit Ben and Credit Purchases
Debit Purchases and Credit Ben
A business is started with the injection of 10,000 in cash. In which account is the credit entry made?
Cash
Capital
A business purchases equipment cash. In which account is the debit entry made?
Equipment
Supplies
A business owner withdraws cash of 1,000 from the business. In which account is the debit entry made?
Drawings Account
Cash
A supplier is paid 500 by cheque, is the cash account debited or credited?
Credited
Debited
A customer paid a loan of $400 using a direct transfer from the bank, do you debit or credit the loan account?
Debit
Credit
Is a bank loan an asset or a liability?
Asset
Liability
A business is started with 5,000 cash from the owner paid into the bank account. Which account is credited?
Cash
Capital
A __________ amount will appear on the left side of a T-account.
Debit
Credit
Equipment is sold for cash?
Assets increase and decrease
Assets and liabilities increase
Goods are purchased on credit terms?
Assets decrease
Liabilities increase
Current liabilities are amount owed by business that are to be paid within
1 month
6 months
1 year
5 year
Mortgage on Premises is one of the
Revenue
Expenses
Current Assets
Non Current Liabilities
An example of Non Current Assets is
Discount allowed
Fixtures & Fittings
Cash at bank
Inventory
Gain on disposal of Non Current Asset is one of
Revenue
Expenses
Current Assets
Current Liabilities
Creditor is one of
Revenue
Expenses
Current Assets
Current Liabilities
Rental is one of
Revenue
Expenses
Current Assets
Current Liabilities
Cash in hand is one of the
Non Current Asset
Current Asset
To record the INCREASE of Owner's Equity, the account must be CREDITED.
TRUE
FALSE
Bank Overdraft is one of the examples of
Current Asset
Current Liability
To increase the value of an assets, the account must be DEBITED.
TRUE
FALSE
All EXPENSES will decrease in CREDIT side of the account.
TRUE
FALSE
Which account below is not a subdivision of owner’s equity?
Owner’s Drawings
Revenues
Expenses
Liabilities
The owner’s drawings account
appears on the income statement along with the expenses of the business.
must show transactions every accounting period.
is increased with debits and decreased with credits.
is not a proper subdivision of owner’s equity.
Which of the following statements is not true?
Expenses increase owner’s equity.
Expenses have normal debit balances.
Expenses decrease owner’s equity.
Expenses are a negative factor in the computation of net income.
Nabila transferred her private motor vehicle, $8000, to the business.
State accounts to be debited and credited
Dr Motor vehicle Cr Bank
Dr Motor vehicle Cr Capital
Dr Motor vehicle Cr Nabila
Dr Motor vehicle Cr Drawings
1. A furniture retailer buys tables for cash for use in the main office of the business. Which entry would record this correctly in the accounts?
Account to be debited - Account to be credited
(a) Purchases - Cash
(b) Cash - Purchases
(c) Office furniture- Cash
(d) Cash - Office furniture
(a)
(b)
(c)
(d)
Asset accounts normally have _____________ balances.
Debit
Credit
The owner’s equity account increases on the ______________ side.
Debit
Credit
Withdrawal account is a ______________ account.
Debit
Credit
A decrease in the liability is recorded as ______________.
Debit
Credit
In a double entry system, a credit is used to record
an increase in liability, revenue and capital and a decrease in asset and expenses
a decrease in liability and capital and increase in expenses
a decrease in revenue and increase in assets
an increase in assets and expenses and a decrease in liability, revenue and capital
A debit entry in Account Receivable is to record
payment of debt by the business
purchase on credit
sales on credit
sales return
Repayment of bank loan will
increase an asset and decrease another asset
decrease an asset and decrease owner's equity
decrease an asset and decrease a liability
decrease an asset and increase a liability
The effects of purchasing a delivery van on credit are
assets increase and liabilities decrease by the same amount
capital and liabilities increase by the same amount
assets and liabilities increase by the same amount
assets, liabilities and capital increase by the same amount
