ACCT1_2

Which statements about book-keeping and accounting are correct?

• Accounting is performed periodically rather than daily.
  

• Accounting relies on having accurate book-keeping records.
  

• Book-keeping includes the preparation of financial statements.

• Book-keeping involves the recording of financial transactions.

What increases owner’s capital?

• 1. bank loan extended from five to ten years

• 1. purchase of inventory on credit

• 1. purchase of machinery by cheque

• 1. transfer of vehicle to business from private use

3. Carl, a trader, took goods from the business for his own use. These goods had cost $100, and $8 carriage had been paid for them to be delivered to the business.
   

   How would this be recorded in Carl’s accounts in the books of the business?

• 1. debit Carl’s capital account $100

• 1. debit Carl’s capital account $108

• 1. debit Carl’s drawings account $100

• 1. debit Carl’s drawings account $108

3. Shula’s financial year ends on 31 March. On 1 April 2021 there was a credit balance of $100 on Yasmin’s account in Shula’s purchases ledger.
   
   What does this mean?

• 1. Shula had paid $100 to Yasmin.

• 1. Shula owed $100 to Yasmin..

• 1. Yasmin had paid $100 to Shula.

• 1. Yasmin owed $100 to Shula.

3. Hasina buys radios from Nazneen at a list price of $10 each. Hasina bought 12 radios and was offered 20% trade discount and 4% cash discount. Two radios were faulty and were returned to Nazneen.

   What was the total of the credit note issued by Nazneen?
   

• 0. $15.36

• 0. $16.00

• 0. $19.20

• 0. $20.00

Which items would be recorded in the general journal of a bakery?

• correction of an error of principle relating to an oven repair

• purchase of a delivery vehicle on credit
  

• purchase of flour on credit
  

• return by a customer of a faulty batch of bread

7. Alisha entered the credit notes she received in March in the correct returns journal. How was the total of this journal recorded in the ledger at the end of the month?

• 1. credit purchases returns account

• 1. credit sales returns account

• 1. debit purchases returns account

• 1. debit sales returns account

7. Which item would not be shown on a bank statement?

• 1. a cheque returned by the bank marked as ‘refer to drawer’

• 1. a monthly payment made for electricity by direct debit

• 1. bank charges

• 1. unpresented cheques

7. Which statement about a purchases ledger control account is not correct?

• 1. It acts as a check on the balance of the purchases account.

• 1. It includes transactions relating to all the credit suppliers.

• 1. It is prepared using information from the books of prime entry.

• 1. It provides proof of the arithmetical accuracy of the purchases ledger.

7. Javid’s sales ledger control account had a debit balance of $12000. Interest on an overdue account, $40, and discount allowed, $150, had been omitted.

   What was the correct balance on the sales ledger control account?
   

• 0. $11810

• 0. $11890

• 0. $12110

• 0. $12190