Accounting Practice 5.1

Purchase goods on credit from Sofea should be recorded in...

• Sales Journal

• Cash Book

• Purchase Journal

• Purchase Return Journal

Cash sales to Aminah should be recorded in...

• Cash Book

• Purchase Journal

• Sales Journal

• Sales Return Journal

Paid wages by cheque should be recorded in...

• Purchase Journal

• Cash Book

• Sales Journal

• Purchase Return Journal

Which of the following best describes current account

• Used for regular payments into and out of a bank account

• To gain more interest on funds deposited in a bank

• Changing with many banks linking current accounts to deposit accounts

• For the bulk clearing of cheques and paper credits

Cash book records ………… receipts and payments.

• Cash

• Cash and credit both

• Credit

• Either cash or credit

Generally cash book is made on …………….basis

• Weekly

• Yearly

• Monthly

• All of them

If the debit and credit aspects of a transaction are recorded in the cash Book it is called as..

• Contra entry

• Double entry

• Simple entry

• Single entry

In a three column Cash Book, when does contra entry occur?

• Withdrawal of cash from bank

• Withdrawal of cash from bank for personal use

• Payment to creditors

• all of the above

Sold goods on credit to Allen $2,000. Trade discount 10%.

Calculate the trade discount.

• $200

• $1,800

• $100

Identify the book of prime entry to post credit sales.

• Cash book

• Purchases day book

• Sales day book

• Sales returns day book