23.10.18 Bookkeeping Recap

What is the accounting equation?

• Assets + liabilities = capital

• Assets - liabilities = capital

• Assets + capital = liabilities

The imprest system is where the petty cash tin is topped up whenever it gets low, regardless of the date.

• True

• False

A decrease in an asset account is a credit

• True

• False

A liability is represented by what balance?

• Debit

• Credit

What is the statement of profit or loss equation?

• Income - Expense = Profit

• Income plus expense = profit

If you increase your bank loan by £5,000 is it a debit or a credit?

• Debit

• Credit

What would be included within the receivables ledger?

• Sales

• Receivables ledger control

• T Limited (Trade receivable)

• A Smith (Trade payable)

If a business owner took £500 cash from the business how would this be recorded?

• Dr Drawings, Cr Bank

• Dr Capital, Cr Cash

• Dr Capital, Cr Bank

• Dr Drawings, Cr Cash

How do you record discounts received in the payables ledger?

• Credit payables ledger control

• Debit the individual payables account

• Credit the individual payables account

• Debit payables ledger control

How do you work out profit?

• Assets + liabilities

• Income + expenses

• Income - expenses

• Assets - liabilities