WorksheetsBooks Of Original Entry
Total questions: 20
Worksheet time: 15mins
What is a bank overdraft?
When the bank owes the business money
When the business withdraws more money than it has in its account
A type of loan from a supplier
A discount for early payment
In the cash book, a bank overdraft appears on the:
Credit side
Debit side
Both sides
Not recorded
Why is a bank overdraft considered a liability?
It increases the profit of the business
It is part of assets
It represents money the business must repay
It is part of petty cash
Which statement is TRUE about a bank overdraft?
It is a permanent source of capital
It is recorded in the petty cash book
It is considered income
It must be repaid and usually has interest
The petty cash book is mainly used for:
Recording daily small expenses
Recording credit sales
Recording bank overdrafts
Recording large purchases
The fixed amount kept in petty cash at the start of a period is called:
Voucher
Balance
Imprest amount
Cash float
Which of the following is NOT usually paid from petty cash?
Stationery
Postage
Taxi fares
Wages
The person responsible for petty cash is called:
Cashier
Auditor
Accountant
Petty cashier
The journal is also called:
Book of final entry
Cash book
Book of original entry
Ledger
The journal is used to:
Record only cash transactions
Record opening entries, closing entries, and errors
Record credit sales only
Prepare trial balance
Which of the following is recorded in the journal?
Cheques received
Petty cash expenses
Bank deposits
Purchase of machinery on credit
The journal shows:
Only credit entries
Both debit and credit with a narration
Only debit entries
Only totals
Irrecoverable debt is:
A loan taken by the business
A cash discount received
Money owed to the business that cannot be collected
A form of petty cash expense
When writing off irrecoverable debts, we:
Debit Irrecoverable Debts and Credit Trade Receivables
Debit Trade Receivables and Credit Irrecoverable Debts
Debit Cash and Credit Sales
Debit Purchases and Credit Supplier
Why are irrecoverable debts recorded as an expense?
They increase profit
They are part of income
They reduce the amount the business will actually receive
They are an asset
Which ledger is affected when writing off irrecoverable debt?
Petty cash book
Trade Receivables Ledger
Purchases ledger
Nominal ledger only
If an error is found, what is the correct way to fix it?
Erase it completely
Tear out the page
Correct it through the journal
Ignore it
Why is using the journal for corrections important?
It prevents fraud
It hides mistakes
It saves time
It avoids double entry
Which type of error does NOT affect the agreement of the trial balance?
Error in addition
Omission of a transaction
Posting to the wrong side
Partial omission of one side
If the trial balance does not agree, what does it indicate?
The petty cash book is correct
There may be an error in recording
There are no transactions
The ledger is complete
