Accounting Chapter 2 & 4 - Past Year MCQ

Sarah sold goods on credit to Zafar. How was this recorded in Sarah’s ledgers?

• credit sales account | debit Zafar account
• debit sales account | credit Zafar account
• credit Zafar account | debit purchases account
• debit Zafar account | credit purchases account

Omar sent a credit note to Miriam for goods returned. How would Miriam record this transaction?

• debit purchases returns | credit Omar
• debit sales returns | credit Miriam
• debit Omar | credit purchases returns
• debit Miriam | credit sales returns

The discount column on the debit side of a trader’s cash book totalled $1300 and the discount column on the credit side totalled $700. How much discount did the trader receive?

• $600
• $700
• $1300
• $2000

Kai bought office equipment from Meena and paid immediately by bank transfer. How should Kai record this in his accounting records?

• debit bank | credit Meena
• debit bank | credit office equipment
• debit Meena | credit bank
• debit office equipment | credit bank

Fatima required additional finance for her business and borrowed funds from Ali. This was deposited into the business bank account. How should Fatima record this?

• debit bank | credit Ali (loan)
• debit bank | credit Ali (trade payable)
• debit Ali (loan) | credit bank
• debit Ali (trade payable) | credit bank

On 1 March, a business owed its suppliers $9500. During March, the following transactions took place. How much did the business owe its suppliers on 31 March?

• $800
• $1000
• $10 300
• $10 500

Jacob settled the account of Ahmed, a credit supplier. He made the following entries on the credit side of his cash book. Which entries did Jacob make on the debit side of Ahmed’s account?

• bank $195
• bank $200
• bank $195 discount allowed $5
• bank $195 discount received $5

Goods purchased on credit from Zamir were returned by Ashwin. Which entries should Zamir make to record this?

• debit Ashwin | credit purchase returns
• debit purchase returns | credit Zamir
• debit sales returns | credit Ashwin
• debit Zamir | credit sales returns

Farouk sells goods on credit. A cheque from Khalid, a credit customer, was dishonoured by the bank. How should Farouk record this?

• debit bank | credit Khalid
• debit irrecoverable debts | credit Khalid
• debit Khalid | credit bank
• debit Khalid | credit irrecoverable debts

William paid $500 in cash to Sonia for rent. How did Sonia record this?

• debit cash | credit rent receivable
• debit rent receivable | credit cash
• debit rent receivable | credit William
• debit William | credit rent receivable