1 Which task would be carried out by a book-keeper?

A comparison of financial statements between years

B preparation of financial statements
C provision of information for decision-making
D recording financial transactions

2 The following ledger account appeared in the books of Leah, a trader.

Amraz
account
$ $

April 26 purchases returns 150 April 1 balance b / d 210

0
30 bank 190 20 purchases 300
0 0
discount 100
balance c / d 295
0
510 510
0 0

Which statement is correct?

A Amraz allowed Leah $100 trade discount on 30 April.

B Amraz owed Leah $2100 on 1 April.
C Leah owed Amraz $2950 on 30 April.
D Leah’s net purchases from Amraz in April were $2900.

3 Sarah sold goods on credit to Zafar.

How was this recorded in Sarah’s ledgers?

general ledger sales ledger

A credit sales account debit Zafar account

B debit sales account credit Zafar account

C credit Zafar account debit sales account

D debit Zafar account credit sales account

4 Omar sent a credit note to Miriam for goods returned.

How would Miriam record this transaction?

account to be account to be
debited credited
A purchases returns Omar
B sales returns Miriam
C Omar purchases returns
D Miriam sales returns

5 Ben sold goods to David for $900 cash.

In which book of prime entry would David record this transaction?

A cash book
B general journal
C purchases journal
D sales journal

6 Why does a trader calculate the profit of his business?

A to calculate the interest payable on a loan

B to calculate the provision for doubtful debts

C to know the total expenses of the business

D to know whether drawings are at a reasonable level

7 Hassan is a trader. During the financial year he took goods from the business
for his own use.
How should he record this?

debit credit

A drawings inventory

B drawings purchases

C income statement inventory

 D income statement purchases

8 Where are the accounts of credit suppliers maintained?

A purchases journal

B purchases ledger

C sales journal

D sales ledger

9 Which document does a trader issue to remind a credit customer that

payment is due?

A credit note

B debit note

C receipt

D statement of account

10 What is a cheque counterfoil used for?

A to pay a cheque into the bank account

B to pay for goods purchased by cheque
C to record a cheque payment in the cash book
D to record a cheque received in the cash book

11 Farouk sells goods on credit. A cheque from Khalid, a credit customer, was
dishonoured by the bank.

How should Farouk record this?

account to be debited account to be credited

A bank Khalid

B irrecoverable debts Khalid

 C Khalid bank

D Khalid irrecoverable debts

12 Tumelo sells on credit. The terms of trade are listed.

list price: $200 per unit

credit period: 60 days

trade discount 15% if 10 units or
more are purchased cash discount 3%
if the debt is paid within one month

A credit customer purchased 20 units and paid the debt within 15

days.

What was the total of the invoice?

A $3298 B $3400 C $3880 D $4000

13 Jane purchased goods and paid by credit transfer.

How should this be recorded in Jane’s accounting records?

account account
to be to be
debited credited
A bank purchases
B purchases bank
C purchases trade
payable
D trade purchases
payable

14 What is shown in a trial balance?

A capital and profit on a particular date

B financial transactions for a particular period
C ledger balances on a particular date
D receipts and payments for a particular period
15 A trader prepares financial statements each year.

What do these assist the trader to do?

A calculate the amount owing to credit suppliers

B calculate the cash drawings
C check the bank statement balance
D make decisions about the future

16 What is not an example of a book-keeping entry?

A an entry made in the bank column of the cash book for a cheque received
B cost of goods purchased on credit entered in the supplier’s account
C expenses paid during the year entered in the income statement
D goods returned by a customer entered in the sales returns journal

17 The following balances appeared in Hussein's books.

fixtures 6000
inventory 3300
trade receivables 3000
trade payables 4500
other receivables 500
other payables 300
loan to Imran 1000
bank overdraft 1400

What was the total of the liabilities?

A $4800 B $6200 C $6400 D $7200

18 What does the owner’s equity consist of?

A the amount of money in the business bank account

B the amount owed by the business to the owner
C the total of the assets owned by the business
D the total of the current assets less the current liabilities
19 Which entries did Sally make to record the following transaction?

Rashid, a credit customer, returned damaged goods.

account account
to be to be
debited credited
A purchase Rashid
returns
B Rashid purchase
returns
C sales returns Rashid
D Rashid sales returns

20 The following account appeared in the books of Mary.

Paul account

$ $

April 1 balance b/d 90 April 21 returns 25

14 sales 150 30 bank 88

discount 2

balance 125
240 c/d 240

Which statement is correct?

A On 1 April Paul owed Mary $90.

B On 14 April Paul sold goods, $150, to Mary.
C On 21 April Mary returned goods, $25, to Paul.
D On 30 April Mary owed Paul $125.

21 In which sections of Zamir’s ledger would the following accounts be

maintained?

1 the sales account

2 the account of Harjit, a trade receivable

sales account Harjit account

A nominal (general) purchases ledger

ledger
B nominal (general) sales ledger
ledger
C purchases ledger sales ledger
D sales ledger purchases ledger
22 Sue allows 2% cash discount to credit customers who settle their account
within 28 days. Jane purchased goods, list price $200, on 10 September. She
returned these goods on 15 September.

Which entry would Sue make on 15 September?

A purchases returns journal $196

B purchases returns journal $200

C sales returns journal $196

D sales returns journal $200

23 Which statement about a accounting system is correct?

A The general ledger does not include non-current asset accounts.

B The income statement always shows a profit.

C The statement of financial position does not include non-current assets.
D The trial balance always balances.

24 Which group contains only liabilities?

A bank loan, trade payables, prepaid rent

B bank overdraft, trade payables, unpaid wages
C trade payables, cash at bank, unpaid rates
D trade payables, inventory, unpaid wages

25 What is the accounting equation?

A assets – liabilities = capital

B assets + liabilities = capital

C liabilities – assets = capital

D liabilities – capital = assets

26 Omar returned faulty goods to Yasmin, the supplier.

Which document did Omar send to Yasmin?

A credit note
 B debit note
C invoice
D statement of account

27 What may a credit balance on a ledger account represent?

A accrued income
B asset
C expense
D prepaid income

28 The following partly-completed account appeared in Edward’s sales ledger.

Ann account

2018 debit credit balanc

e
$ $ $
April 4 sales 21
11 sales returns 500 50
0

On 29 April, Ann paid $10 000 by cheque and was given a cash

discount of $200. Which statement is correct on 30 April?

A Ann owed Edward $10 800.

B Ann owed Edward $11 200.

C Edward owed Ann $10 800.

D Edward owed Ann $11 200.

29 The totals of a trial balance did not agree. The total of the debit column was
$13 400.

It was found that the purchases journal had been overcast by $195 and
goods bought from supplier X for $85 had been incorrectly credited to Y.

What was the total of the credit column of the trial balance?

A $13 120 B $13 205 C $13 595 D $13 680

30 A trader provides the following information.

 $

equipment 10 000
inventory 4 000
trade receivables 2 500
trade payables 3 500
insurance prepaid 100
rent owing 200
bank overdraft 1 500

What is the total of the assets?

A $16 600 B $16 700 C $17 600 D $18 100

31 What is a disadvantage of a computerised book-keeping system?

A Calculations are performed without errors.

B Information can be processed quickly.
C Reconciliations are performed automatically.
D There is an initial cost of training staff.

32 James bought a motor vehicle costing $10 000 from GF Motors. He paid
$2000 by cheque. The balance was to be paid over the next two years.

How was this recorded in James’ books of account?

account to be $ account to be $
debited credited
A bank 2 000 motor vehicles 10
000
GF Motors 8 000
bank 2 000 GF Motors 10
000
B motor vehicles 8 000
GF Motors 10 000 bank 2 000
motor vehicles 8 000
motor vehicles 10 000 bank 2 000
C GF Motors 8 000

D
33 Sara purchases goods on credit from Zola.

Sara owed Zola $400 on 1 May. She paid this on 1 May after deducting a 5%
cash discount. Sara made further purchases, $280, during May.

What were the opening and closing balances on Sara’s statement of account
for May?

opening balance closing balance

$ $

A 380 266

B 380 280

C 400 280

D 400 300

34 A business provided the following information for April 2017.

invoices received for credit 250

purchases 000
invoices received for cash purchases 15 000
credit notes received for goods 10 000
returned

What was the total of the purchases journal for April 2017?

A $240 000 B $250 000 C $255 000 D $265 000

35 Melissa transferred $5000 from the bank deposit account to the bank current
account on 1 May.

On the same day she received a bank loan, $10 000, which she paid into
the bank current account.

How will Melissa record these transactions?

bank loan account bank deposit account bank current account

 debit credit debit credit debit credit

A ✓ ✓ ✓
✓ ✓ ✓

B ✓ ✓ ✓
✓ ✓ ✓

C
D
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