FA1 : Purchases & Payables Ledger

Which one of the following would you expect to see on the debit side of the trade payables general ledger account?

• Cash payment

• Invoices from suppliers

• Cash purchases

• Irrecoverable Debts

A biz received a credit note for goods returned that had originally cost $120 inclusive of sales tax at a rate of 20%. Which of the following the correct double entry

• Dt purchases $100 Dt Sales Tax $20 Ct Trade Payables

• Dt Trade Payables $120 Ct Purchases $100 Ct Sales Tax $20

• Dt purchases $96 Dt Sales Tax $24 Ct Trade Payable $120

• Dt Trade Payables $120 Ct Purchases $96 Ct Sales Tax 24

If a purchase return of $150 was wrongly entered on the debit side of the sales return account but correctly entered in the trade payables general ledger account, the balance recorded on the suspense account would be

• Debit $150

• Debit $300

• Credit $150

• Credit $300

A owes b $500 and B owes A $350. If A and B decide to settle the debts net, which of the following is the correct contra entry in A's accounting records :

• Dt payables $350 Ct Receivables $350

• Dt Payables $150 Ct Receivables $150

• Dt Receivables 350 Ct Trade Payables 350

• Dt Receivables 150 Ct Payables 150

Which of the following would not be used when checking a supplier invoice?

• Goods received note

• Purchase Order

• Remittance Advice

• Delivery Note

Which of the following would cause a debit balance in the individual trade payables ledger?

• Irrecoverable Debt Recovered

• Discount Allowed

• Overpayment to Supplier

• Issue debit note after full payment has been made

Tim returns 3 units with a list price of $150 per unit. A 10% trade discount was applied and sales tax is 17.5%. What is the total credit note amount?

• 475.87

• 158.62

• 412.87

• 528.75

We sold goods on credit to Vik for $4,712. He returned $841 of goods and we issued a credit note. What will the balance on Vik’s account be?

• Dt 3871

• Ct 3871

• Dt 5553

• Ct 5553

A company carries out the following transactions:

• purchase of office desk on credit for $300,

• purchase of office chair for $100 cash.

What is the effect of these transactions

• Assets increase by $400 No change in Liabilities

• Asset increase by $300 Liabilities increase by 300

• No change in Assets no change in liabilities

• Asset increase by $400 Liabilities increase by $400