Double entry & Balancing off

Sale of goods on credit would be recorded as

• Dr. Creditor, Cr. Sales

• Dr. Debtor, Cr. Sales

• Dr. Goods, Cr. Creditor

• Dr. Goods, Cr. Debtor

All are classes of accounts except

• Real

• Nominal

• Impersonal

• Personal

Which account has a credit balance?

• Returns Inwards

• Returns Outwards

• Carriage Outwards

• Purchases

Goods taken for personal use affects which 2 account:

I Drawings

II Stock

III Cash

IV Purchases

• I,II

• II,III

• I, IV

• All of the above

C. Williams bought goods on credit from G. Grant. C Williams is a

• creditor

• debtor

• supplier

• owner

Which account is NOT nominal?

• Building

• General expenses

• Discount received

• Carriage outwards

A sole trader bought an equipment for $8000 cash. the double entry should be

• Dr cash, Cr purchases

• Cr cash, Dr purchases

• Dr Cash, Cr equipment

• Cr Cash, Dr equipment

If the drawings account is debited and the bank account is credited, it means

• the bank puts money into the owner's account

• the owner takes money from the bank to use in the business

• the owner uses the business money for his/her personal use

• the owner puts money into the business's bank account

Which term describes an exchange of goods and services?

• Income Statement

• Balance Sheet

• Transaction

• Trial Balance

A double entry system of accounting is

• transactions must be written in two books

• transactions must have a debit entry and a credit entry

• each account must be written twice

• an account must have two sides