1- Which of the following would be a liability for a computer supplies outlet?

A- Property taxes owing for the premises B- Money paid for staff wages C- Inventory of printer cartridges D- The sale of computer system 2- Which of the following should be classified as a non-current asset? A- Trade payable B- Delivery van C- Inventory of finished goods D- Trade receivable 3- A term of capital expenditure is debited to an expense account. What type of error is that? A- Compensation error B- Error of commission C- Error of omission D- Error of principle 4- Betty has been looking at her bank statement, which shows a balance of $150 credit. She is confused because her cash book shows a bank balance of $450 credit. Which of the following could account for the difference? A- The bank has not yet processed a receipt of $600 from a credit customer B- A cheque of $600 received from a customer was recorded twice in her cash book C- A standing order of $150 was recorded twice in her bank statement but recorded correctly in her cash book D- A cheque of $600 paid to a supplier has not yet been presented at the bank 5- Where are the totals of the purchases day book posted to? (1) Cash book (2) Trade payables control account (3) The journal (4) Trade payables ledger A- 2 and 4 B- 1 and 3 C- 3 and 4 D- 2 only 6- On 30 November, Harry sends each of his credit customers a document , listing all the transactions between them, from 1 November to 30 November, and starting the balance outstanding at 30 November. What type of document is this? A- Invoice B- Credit note C- Receipt D- Statement

7- Which of the following is a record per employee of total hours worked during a period of time? A- Job card B- Timesheet C- Payroll D- Bonus sheet 8- After a business has prepared its initial trail balance, there is a suspense account with a debit balance of $420. Errors are then discovered: (1) An electricity bill for $200 was debited to the motor expenses account rather than the heat and light account. (2) The rent expense account balance of $380 was omitted from the trial balance. What is the remaining balance on the suspense account after these errors have been corrected? A- $240 debit balance B- $240 credit balance C- $40 credit balance D- $40 debit balance 9- What is the journal entry for writing off an irrecoverable debt? A- Dr Payables Cr Irrecoverable debts B- Dr Irrecoverable debts Cr Payables C- Dr Receivables Cr Irrecoverable debts D- Dr Irrecoverable debts Cr Receivables 10- When the list of receivables balances from the receivables ledger for a business was totaled, it was found to be $21,560. However this did not agree with the balance on the receivable ledger control account and a number of errors were discovered: (1) A credit balance of $180 had been omitted from the list of balances. (2) The sales day book had been under-totaled by $1,000. (3) A credit note sent to one individual customer for $600 had been included in his account as an invoice. What is the corrected total of the list of receivables balances from the receivables ledger? A- $20,180 B- $20,780 C- $21,180 D- $21,780 11- An extract from Nigels aged receivables analysis at 30 June is given below: Customer Credit limit Total <30 days 30-60 days >60 days Peter 10,000 6,790 2,687 3,117.40 985.60 On 23 July Nigel received payment from Peter for invoice number 01256. This invoice had been for goods with a list price of $1,580 plus sales tax at 17.5% and was dated 14 May.

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In Nigels aged receivables analysis at 31 July, what is the amount due from Peter which has been outstanding for more than 60 days? A- $2,523.00 B- $4,103.00 C- $1,260.90 D- $2,246.50 The state benefit deductions account in a businesss trial balance shows a credit balance of $4,560. What does this amount represent? A- Income of the business B- An asset of the business C- An expense of the business D- A liability of the business Laura sells goods to Nicola on credit. Laura gives Nicola a credit limit of $500. What does this mean? A- The amount that Nicola owes Laura must not exceed $500 at any time B- Nicola must purchase at least $500 of goods from Laura during the month C- Nicola must pay at least $500 of her outstanding balance to Laura every month D- Nicola cannot purchase more than $500 of goods from Laura during the month A business received its bank statement showing a debit balance of $225.70 as at 31 July. On 29 July cheques totaling $168.30 had been paid into the bank account but these have not appeared on the bank statement. On 30 July cheques to supplies totaling $185.60 were written and mailed but these have not yet appeared on the bank statement. All other entries have been correctly made in the cash book. What is the correct bank account figure to appear in the trail balance? A- $208.40 debit balance B- $243.00 debit balance C- $208.40 credit balance D- $243.00 credit balance The petty cash system operates with an imprest amount of $100. During last month, the petty cashier paid out $35.75. At the beginning of this month, how much should the chief cashier have reimbursed the petty cashier? A- $64.25 B- $100 C- $35.75 D- $135.75 In which book of prime entry would a settlement discount allowed to a customer be recorded? A- Cash payments book B- Sales day book C- Cash receipts book

D- Purchases day book 17- Rhian purchases goods from Sean on credit and receives a regular monthly statement from him. The statement received at the end of June shows that Rhian owes $578.40 to Sean. However Rhian does not agree with this total. She has noted the following discrepancies: (1) On 29 June Rhian sent a payment to Sean of $225.60 which has not appeared on the statement. (2) A credit note from Sean for $38.50 has appeared on the statement as an invoice. What is the correct amount that Rhian owes to Sean? A- $314.30 B- $501.40 C- $275.80 D- $302.60 18- John sells goods on credit to Janet, which are later returned by Janet because they were not as she ordered. Which document would John raise to cancel Janets debt for these goods? A- Remittance Advice B- Credit Note C- Debit Note D- Purchase Order 19- A business has a balance on its receivables ledger control account of $45,600. However this did not agree with the total of the list of balances on the receivables ledger. A number of errors were discovered: (1) The total of the discounts allowed column in the cash receipts book had been posted as $1,780 instead of $1,870. (2) A credit balance on an account in the receivables ledger control account had been undertotalled by $100 After correction of these errors the balance on the receivable ledger control account agreed with the total of the list of individual receivables balances. What was the original total of the lists of individual balances in the receivables ledger before these errors were corrected? A- $45,790 BC- $45,410 D- $45,510 E- $45,610 20- Which of the following should be classified as a liability? (1) Receivables expense (2) Discounts allowed (3) Purchases

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A- 3 only B- None of the above C- 1 only D- 2 only What is the correct double entry to record the payment of wages to staff by BACS? A- Dr Bank Cr Wages B- Dr Payables Cr Wages C- Dr Wages Cr Bank D- Dr Wages Cr Payables In which book of prime entry would a settlement discount allowed to a customer be recorded? A- Sales day book B- Cash payments book C- Cash receipts book D- Purchases day book Which of the following books of prime entry are used to post entries to the payables ledger control account? (1) Cash receipts book (2) Returns inward book (3) Cash payments book (4) Return outwards book A- 1 and 3 B- 2 and 3 C- 3 and 4 D- 1 and 4 Rob operates a petty cash imprest with a float of $200. In a particular week the petty cashier reimburses cash to employees against the following authorized vouchers:

Monday Sundry stationery items $52 Wednesday Postage stamps $24 Thursday Cleaning materials $19 Friday Staff refreshments $22 How much will be paid into the petty cash imprest from Robs bank account at the end of the week? A- $117 B- $200 C- $83 D- $317 25- Fiona would like an agreement made with a supplier to be legally binding. What is the term for the agreement she should use? A- An obligation

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B- A promise C- A proposal D- A contract In a large business, who would be MOST likely to chase outstanding debts from customers on a day to day basis? A- The purchases controller B- The accounts payables ledger clerk C- The finance director D- The accounts receivable ledger clerk A business has a policy that when purchases goods are delivered, a delivery note is always signed and filed. What documents should the delivery note be checked with? A- Purchase order and credit note B- Remittance advice and purchase order C- Purchase order and purchase invoice D- Sales order and sales invoice Gerard transfers $2,500 by BACS to the account of one of his trade suppliers. What type of transaction is this for Gerard? A- Receipt B- Sale C- Payment D- Purchase Which of the following transactions would usually be recorded in the journal? (1) The correction of an error in the accounts (2) The return of purchased goods to suppliers (3) The opening entries of a business A- 1 and 3 B- 3 only C- 2 and 3 D- 1 and 2 Christopher has $1,375 in his business bank account on 1 February 20X8. During February the following transactions occur: 3 February Payment of $195 expenses by cheque 10 February Purchase of goods on credit for $307 11 February Cash sale of goods for $220 less 5% trade discount 14 February Cheque payment to supplier of $444 27 February Receipt of credit note for $176 from credit supplier What is Christophers bank balance at 28 February? A- $1,023 B- $1,121 C- $956 D- $945

31- Benjamins receivables ledger balances total $150 less than the receivables control account. Which of the following could cause this difference? A- A cash sale of $150 was debited to the customer in the receivables ledger B- A credit sale of $150 was not recorded in the accounting system C- A credit purchase of $75 was posted twice to the purchases account D- A return inwards of$150 was recorded twice in the receivables ledger 32- What is the double entry to record a purchase return? A- Dr Purchase returns Cr Receivables B- Dr Payables Cr Purchase returns C- Dr Receivables Cr Purchase returns D- Dr Purchase returns Cr paybles 33- Edward, an individual customer, purchases goods totaling $2,350 inclusive of sales tax at the rate of 17.5% How much sales tax does Edward incur on his purchases? A- $2,000 B- $350 C- None D- $411.25 34- Coulson writes out a cheque to Donald for $100. Which party is Donald in this transaction? A- Drawer B- Drawee C- Payer D- Payee 35- Frances, who is registered for sales tax at the rate of 17.5% makes sales in the month of August of $51,700 exclusive of sales tax and makes purchases of $47,000 inclusive of sales tax. At the beginning of August the balance on the sales tax account is a credit balance of $3,160. What is the balance in her sales tax account at the end of August? A- $2,047.50 B- $5,207.50 C- $700 D- $3,860 36- A business has a balance on its receivable ledger control account of $45,600. However this did not agree with the total of the list of balances on the receivables ledger. A number of errors were discovered: (1) The total of the discount allowed column in the cash receipts book had been posted as $1,780 instead of $1,870. (2) A credit balance on an account in the receivables ledger had been under-totaled by $100 After correction of these errors, the balance in the receivables ledger control account agreed with the total of the list of individual receivables balances.

What was the original total of the list of individual balances in the receivables ledger before these errors were corrected? A- $45,610 B- $45,790 C- $45,410 D- $45,510 37- Dougie has recently received the following purchase invoice: $ List price of goods Less: trade discount 1,000.00 (200.00) 800.00 Sale tax at 17.5% 133.00 933.00 The invoice includes the offer of a settlement discount of 5% for payment within 14 days of the invoice date. Dougie always takes advantage of settlement discounts offered. What amounts would be recorded in Dougies cash payments book when this invoive is paid? A- Total payment $893.00 Discount allowed $46.65 B- Total payment $886.35 Discount allowed $40.00 C- Total payment $886.35 Discount allowed $46.65 D- Total payment $893.00 Discount allowed $40.00 38- Given below are some of the transactions for Berthas business for the month of June; $ Credit sales 105,400 Credit purchases 84,500 Cash received from customer 101,300 Returns inwards 7,500 Returns outwards 8,200 Discounts received 3,900 Discounts allowed 4,300 If the balance on the payables ledger control account at the start of June was $14,300, and all sales and purchases are made on credit, what is the balance on the account at the end of June? A- $11,100 B- $10,700 C- $11,800

D- $11,400 39- Sally owns an estate agency and made the following purchases: (1) A power cleaner machine for cleaning houses (2) A burglar alarm for her office premises (3) The wages of a property valuer (4) Three houses for resale Which items are capital expenditure for Sallys business? A- 1, 2 and 4 B- 1 and 4 only C- 2 and 3 D- 1 and 2 only 40- The balance on Davids payables ledger control account at the end of July was $15,670. However a number or errors have since been discovered: (1) The cash payments book total for one week was entered as $56,740 instead of the correct figure of $65,740. (2) The total for discounts received of $1,820 was entered into the control account twice. What is the correct balance on Davids payables ledger control account at the end of July? A- $8,490 B- $4,850 C- $26,490 D- $22,850 41- When preparing his trial balance, Alfie included discounts received of$540 in the total for discounts allowed, and discounts allowed of $720 in the total for discount received. What adjustments should Alfie make to correct the error? A- Increase discounts allowed by $180 and decrease discounts received by $180 B- Increase discounts allowed by $180 and decrease suspense by $180 C- Increase discounts received by $180 and decrease discounts allowed by $180 D- Increase suspense by $180 and decrease discounts received by $180 42- Harry has a balance of $73,210 on his receivables ledger control account at the end of May. What does this mean? A- Harry is owed $73,210 by his customers at the end of May B- Harry has sold $73,210 of goods to credit customers during May C- Harry has received $73,210 from his credit customers during May D- Harry owes $73,210 to his suppliers at the end of May 43- Simon recorded a credit sale as a cash sale. What accounting entry should be made to correct this error? A- Dr Receivables Cr Cash B- Dr Receivables Cr Sales C- Dr Sales Cr Cash

D- Dr Cash Cr Receivables 44- When the list of receivables balances from the receivables ledger for a business was totaled, it was found to be $21,560. However this did not agree with the balance on the receivables ledger control account and a number of errors were discovered: (1) A credit balance of $180 had been omitted from the list of balances. (2) The sales day book had been under-totaled by $1,000. (3) A credit note sent to one individual customer for $600 had been included in his account as an invoice. What is the corrected total of the list of receivables balances from the receivables ledger? A- $20,780 B- $21,180 C- $21,780 D- $20,180 Neil has run out of space to store his invoices. Which of the following would be an appropriate solution to this problem? A- Return the invoices to the seller B- Shred the invoices once they have been paid C- Microfiche the invoices D- File them in a filing cabinet Which of the following errors would be highlighted by the extraction of a trial balance? (1) Transposition error when transferring account balance to trial balance (2) Posting of the correct amount, but to the wrong account (3) Addition error in balancing a ledger account (4) Single sided entry A- 1, 2 and 4 B- 1, 3 and 4 C- 2, 3 and 4 D- 1, 2 and 3 The discounts column in the cash receipts book totaling $520 has been entered in the wrong side of both the concerned. What is the journal entry required to correct this error? A- Dr Receivables $520 Cr Discounts allowed $520 B- Dr Receivables $1,040 Cr Discounts allowed $1,040 C- Dr Discounts allowed $1,040 Cr Receivables $1,040 D- Dr Discounts allowed $520 Cr Receivables $520 On 30 September a businesss bank statement showed a credit balance of $368.90. However this did not agree with the bank account balance in the general ledger. The following discrepancies were discovered whish fully explained the difference: (1) Cheques to suppliers recorded in the ledger account which had not yet cleared through the bank statement totaled $226.50.

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(2) One page of the cash receipts book had been under-totaled by $100.00 (3) Bank charges of $10.00 had been omitted from the cash payments book. What was the original balance on the bank account in the general ledger before the errors were adjusted for? A- $142.40 Dr B- $52.40 Dr C- $52.40 Cr D- $142.40 Cr Which document should be sent to a business with every customer payment? A- Remittance advice B- Credit note C- Statement D- Invoice Which of the following items are expenses? (1) Wages paid weekly (2) Bank overdraft (3) Bank charges (4) Closing inventory A- 1 and 3 only B- 1, 3 and 4 C- 2 and 3 D- 1 and 4 only What is the double entry for the purchase of inventory in credit? A- Dr Payables Cr Inventory B- Dr Purchases Cr Payables C- Dr Payables Cr Purchases D- Dr Inventory Cr Payables When a trial balance was drawn up for a business the bank balance appeared as a credit balance of $156.70. It was then discovered that a standing order payment for insurance of $120.00 had been omitted from the cash book, bank charges of $25.00 had not been recorded and a credit customer had paid $450.60 directly into the business bank account. What was the correct balance on the bank account to appear in the trial balance? A- $462.30 credit balance B- $148.90 debit balance C- $462.30 debit balance D- $148.90 credit balance Which of the following statements is correct for a business with a large number of transactions? A- Transactions processing is a continuous process.

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B- Financial statements (The statement of financial position and The income statement) should be produced daily. C- Entries to the cash book should only be made monthly. D- Bank reconciliation statements should only be prepared annually 54- Angelina has a balance on her capital account of $23,500 at the start of the year. During the year her business made a profit of $13,300 and Angelina withdrew $8,700 as drawings. She also introduced a computer at $2,100 into the business that she had previously been using at home. What is Angelinas closing capital balance? A- $16,800 B- $30,200 C- $16,900 D- $23,500 55- At the beginning of the month a trade receivable ledger account has a $100 credit balance, which is owed to the customer. During the month the customer buys goods to the value of $10,000 and sends a cheque for $1,500. What will be the balance on the account at the end of the month? A- $8,400 Cr B- $8,400 Dr C- $8,600 Dr D- $8,600 Cr 56- Which of the following is a transaction made on credit? A- Purchase of a new machine by cheque B- Payment of a restaurant bill out of petty cash C- Purchase of goods by cheque with a trade discount of 20% D- Sale of goods with a 3% settlement discount 57- Gregory received a purchase order from Henrietta for goods with a list price of $4,250. A trade discount of 20% has been negotiated plus a settlement discount of 2% for payment within 10 days of the invoice date. Sales tax is 17.5%. What is the total amount to be shown on the invoice sent by Gregory to Henrietta? A- $3,400.00 B- $3,995.00 C- $3,983.10 D- $4993.75 58- Which of the following ways of paying for goods allows the customer the longest settlement period? A- Debit card B- Credit card C- Cheque payment D- Cash payment

59- Linda sent the following sales invoice to Maise: $ List price of goods 368.40 Less: trade discount (10%) (36.84) 331.56 Sales tax (17.5%) 58.02 Invoice total 389.58 What amount would Linda record in her sales account and in her receivables ledger for this invoice? A- Sales account $389.58 Receivables ledger $389.58 B- Sales account $331.56 Receivables ledger $389.58 C- Sales account $331.56 Receivables ledger $331.56 D- Sales account $368.40 Receivables ledger $331.56 60- Angus has prepared his payables ledger control account as follows: Payables ledger control $ Payments to credit suppliers 275,480 Opening balance Credit purchases $ 32,670 284,600

Contra with receivables ledger 7,710

What is the closing balance on Angus payables ledger control account? A- $283,190 Dr B- $317,270 Cr C- $34,080 Dr D- $34,080 Cr 61- Given below are the figures from a trial balance for Anthony: $ Capital 42,000 Trade receivables 14,000 Plant and equipment 27,000 Inventory ? Sales 73,000 Bank overdraft 5,000 Purchases 60,000 Trade payables 10,000 What is the missing figure for inventory in Anthonys trial balance? A- $34,000 B- $26,000

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C- $21,000 D- $29,000 Which of the following should be classified as capital expenditure? A- Installation of a new air-conditioning unit in an office building B- Repair of the air-conditioning unit in an office building C- Purchase of ink cartridges for a computer D- Decoration of managing directors office Which of the following are examples of controls over cash payments? (1) Requiring all payments to be authorized (2) Checking payments for goods to invoices and goods received notes (3) Ensuring one person only is both the cheque signatory and responsible for performing bank reconciliations (4) Using passwords to access the BACS payment system A- 1, 2 and 3 only B- 1, 2, 3 and 4 C- 2, 3 and 4 only D- 1, 2 and 4 only Samuel purchased the following items: 120 of A at $2.50 list price each 200 of B at $0.75 list price each Samuel is allowed a trade discount of 10%, and a further 5% cash discount if the goods are paid for within 30 days. What amount should be included for purchases in the purchase day book? A- $450.00 B- $384.75 C- $405.00 D- $427.50 Tristan has incurred the following costs during the month: $ Payment of staff wages 1,500 Purchase of inventory 7,250 Purchase of office computer 1,150 Repairs to building 875 10,775 How much of this expenditure should Tristan capitalize and depreciate? A- $9,275 B- $1,150 C- $10,775 D- $2,025

66- Amold has posted an invoice for rent to the insurance account instead of to the rent account. What double entry is needed to correct this? A- Dr Rent Cr Suspense B- Dr Rent Cr Insurance C- Dr Suspense Cr Insurance D- Dr Insurance Cr Rent 67- Joss was preparing her bank reconciliation and discovered the following: $ (1) Standing order payment for rent payable not recorded in cash book 6,213 (2) Interest earned on bank balance not recorded in cash book 744 What accounting entry is required to record these items? A- Dr Bank $5,469 Dr Interest $744 Cr Rent $6,213 B- Dr Rent $6,213 Dr Interest $744 Cr Bank $6,957 C- Dr Rent $6,213 Cr Bank $5,469 Cr Interest $744 D- Dr Bank $6,957 Cr Interest $744 Cr Rent $6,213 Beatrice maintains a payables control account. During the month she makes purchases of $44,750 on credit, but returns 10% of the items bought. Beatrice also makes contra entries in the payables control account against trade receivables totaling $876. What is the net effect of these transactions on the payables control account? A- Trade payables will decrease by $876 B- Trade payables will increase by $39,399 C- Trade payables will increase by $40,275 D- Trade payables will increase by $43,874 Which of the following is a book of prime entry? A- General ledger B- Cash book C- Receivables ledger control account D- Bank reconciliation Which of the following statements are correct? (1) Clearing is a mechanism for obtaining payment for cheques (2) A bank overdraft is repayable on demand (3) A cheque must be signed as a form of authorization A- 1 and 3 only B- 2 and 3 only C- 1, 2 and 3 D- 1 and 2 only Nicholas has just prepared his trial balance and the debit total is $20 more than the credit total. Which of the following errors would cause this $20 difference? A- A purchase return of $10 was credited twice to purchases

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B- A $20 credit sale was credited to purchases instead of sales C- A $60 purchase was recorded as $40 in the purchase account D- The returns outwards account of $20 was omitted from the trial balance 72- John banks all his cash and cheque receipts every day. Which of the following should he complete and take to the bank with the cash and cheques? A- A paying in slip B- A direct debit mandate C- A credit card voucher D- A BACS authorization 73- What is the journal entry required to record returns from credits customers totaling $674? A- Dr Returns outwards $674 Cr Payables $674 B- Dr Receivables $674 Cr Returns inwards $674 C- Dr Returns inwards $674 Cr Receivables $674 D- Dr Payables $674 Cr Returns outwards $674 74- When a credit sale is made, the following documents may be sent to the customer: (1) Statement of account (2) Invoice (3) Confirmation of order (4) Despatch note In what sequence will these documents normally be sent? A- 3, 1, 4, 2 B- 4, 3, 1, 2 C- 3, 4, 2, 1 D- 2, 3 ,1 ,4 75- Magnolia sells goods to cash and credit customers. Which of the following costs would be avoided by selling to ONLY cash customers? (1) Maintaining a receivables ledger (2) Issuing credit notes for goods returned from customers (3) Recording cash received from customers (4) Irrecoverable debts A- 2 and 4 B- 2 and 3 C- 1 and 2 D- 1 and 4 76- Ted works in a manufacturing business and is paid a basic wage of $150 per 35 hour week, plus overtime at $5.00 per hour. If he produces more than 40 units of output he also gets a bonus of $10 per unit of output over 40 units. During the last week Ted worked 38 hours and produced 45 units of output. What is Teds gross pay for the week? A- $215

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B- $200 C- $150 D- $115 A business has 48 manufacturing employees who work a standard week of 35 hours at a basic rate of pay of $8.00 per hour. For all additional hours overtime is paid at a rate of time and a half. In the first week of June the total hours worked by the employees were 2,020 What is the total wage cost for the week? A- $17,520 B- $13,440 C- $20,160 D- $16,160 What does a credit entry in the ledge accounts represent? A- Decrease in assets or increase in income B- Increase in liabilities or decrease in income C- Decrease in assets or increase in expenses D- Increase in assets or increase in income Why might a business produce a bank reconciliation statement? (1) To identify errors made by the bank (2) To identify slow paying customers (3) To identify errors made by the business (4) To calculate cash discounts on purchases A- 1 and 3 B- 3 and 4 C- 1 and 4 D- 2 and 3 When the trial balance of a business was drawn up the total of the debit balances was $86,500 and the total of the credit balances was $86,000. A suspense account was created for the difference. It was then discovered that the miscellaneous expenses from the petty cash book totaling $300 had not been posted to the miscellaneous expenses account. After correction of this error what is the remaining balance on the suspense account? A- $200 credit balance B- $800 credit balance C- $800 debit balance D- $200 debit balance Which of the following pairs of transactions would be recorded on the same side of the receivables ledger? A- Returns to suppliers and irrecoverable debts written off B- Returns from customers and credit sales C- Credit sales and discounts allowed D- Returns from customers and irrecoverable debts written off

82- What is the double entry for the purchase of a new computer, paid for by cheque? A- Dr Non-current assets Cr Bank B- Dr Non-current assets Cr Payables C- Dr Payables Cr Non-current assets D- Dr Bank Cr Non-current assets 83- A business employs 28 production workers. They receive a bonus based upon productivity. The standard production rate is 100 units of the product per hour, but for all units produced in the factory over and above this amount a bonus of 50 cents per unit is paid and shared equally amongst the production workers. In the last week in July the production workers worked for 1,150 hours in total and produced 119,480 units. How much will each production worker earn as a bonus during this week? A- $2,240 B- $80 C- $160 D- $4,480 84- What is the journal entry for writing off an irrecoverable debt? A- Dr Irrecoverable debts Cr Receivables B- Dr Receivables Cr Irrecoverable debts C- Dr Payables Cr Irrecoverable debts D- Dr Irrecoverable debts Cr Payables 85- Ewan buys $2,000 worth of goods on credit, and $500 worth of goods for cash from Webster. What are the correct postings to record this? A- Dr Purchases $2,500 Cr Webster $2,000 Cr Bank $500 B- Dr Purchases $2,500 Cr Webster $2,500 C- Dr Webster $2,000 Dr Bank $500 Cr Purchases $2,500 D- Dr Webster $2,500 Cr Purchases $2,500 86- At the start of the month the balance on Pails sales tax account is $1,000 credit. During the month the business made sales of $2,350 and purchases of $2,115, both figures inclusive of sales tax at 17.5%. What is the balance on Pauls sales tax account at the end of the month? A- $1,035 Cr B- $1,235 Cr C- $1,035 Dr D- $1,235 Dr 87- In which of the following circumstances would a suspense account be used? (1) Only one side of an accounting entry is entered into the ledger accounts (2) Both sides of a double entry are made but to incorrect accounts (3) The trial balance does not balance (4) Two errors are made which cancel each other out

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A- 1 and 2 B- 3 and 4 C- 2 and 3 D- 1 and 3 Ann makes sales on credit and for cash. Which of the following could explain why Ann maintains an aged receivables analysis? (1) To identify the sales figure for a period (2) To control returns made by credit customers (3) To identify slow paying customers A- 3 only B- 2 and 3 C- 1 and 2 D- 1 and 3 What transaction would result in the following double entry in Jemimas books? Dr Bank Cr Trade receivables A- Jemima makes a credit sale B- Jemima sets off a trade receivable and trade payable C- Jemima receives an outstanding amount from a customer D- Jemima pays an outstanding amount to a supplier The cash receipts book of a business has a memorandum column for discounts, What is the double entry for the total of this discounts column? A- Dr Discount allowed Cr Receivables B- Dr Discounts received Cr Payables C- Dr Receivables Cr Discounts allowed D- Dr Payables Cr Discounts received Where are customers personal accounts normally posted from? A- The sales day book B- The sales account C- The purchases day book D- The trade receivables ledger control account A business has an overdraft with its bank. Which of the following is correct? A- The bank has a payable, the business has a receivable B- The business has a debit balance in its cash book C- The business will show the overdraft as a current asset D- The bank has a receivable, the business has a payable

93- Louise has calculated her payroll figures for July as follows: $ Net pay 21,450 Employers state benefit contributions 4,230 Employees state benefit contributions 3,880 Income taxes deducted 5,360 Employees pension contributions 5,200 What is Louises wages expense for the month of July? A- $35,890 B- $21,450 C- $26,810 D- $40,120 94- What is the journal entry required to record returns from credit customers totaling $674? A- Dr Returns inwards $674 Cr Receivables $674 B- Dr Receivables $674 Cr Returns inwards $674 C- Dr Returns outward $674 Cr Payables $674 D- Dr Payables $674 Cr Returns outwards $674 95- Which of the following are valid reasons for carrying out a reconciliation between the total of the receivables ledger balances and the balance on the receivables ledger control account? (1) As a check on the individual posting to the receivables ledger (2) In order to find errors in the postings (3) In order to check the figure for receivables in the statement of financial position A- 1 and 3 only B- 1 and 2 only C- 1, 2 and 3 D- 2 and 3 only 96- Neville sells computers, printers and software and records transactions in an analyzed sales day book. An extract from the sales day book for May is shown below. Moira and Archie are new customers. Analyzed Sales Daybook Date 11 May 13 May 15 May 20 May 22 May 24 May Totals Customer Sheila John Archie Archie Moira Sheila Computers $1,000 $2,000 $5,000 $3,000 $11,000 Printers $2,000 $1,000 $5,000 $1,000 $9,000 Software $1,000 $4,000 $1,000 $1,000 $7,000 Totals $4,000 $6,000 $6,000 $6,000 $4,000 $1,000 $27,000

By the end of May, Moira and Archie had paid 60% of the money they owed to Neville. On 1 June, how much in total did Archie and Moira owe to Neville?

A- $9,600 B- $6,400 C- $10,800 D- $16,000 97- A business has petty cash which is operated under an imprest system with an imprest amount of $250. At the end of July the amount remaining in the petty cash box is $83.60. Amongst the petty cash vouchers in the petty cash box there was a cheque from an employee for $10. The employee had paid the cheque to the business in return for a cash advance of $10. How much net petty cash expenditure was there in the month? A- $156.40 B- $83.60 C- $250.00 D- $166.40 98- The balance on Davids payables ledger control account at the end of July was $15,670. However a number of errors have been discovered: (1) The cash payments book total for one week was entered as $56,740 instead of the correct figure if $65,740 (2) The total of discounts received of $1,820 was entered into the control account twice What is the correct balance on Davids payables ledger control account at the end of July? A- $22,850 B- $4,850 C- $8,490 D- $26,490 99- When a business draws up its final balance the debits and the credits do not agree. A suspense account is opened, the difference is investigated and the following errors are discovered: (1) Cash drawings of $2were only entered into the cash book. (2) Petty cash expenses of $50 were not entered into the books of account at all. (3) Discounts allowed of $40 were correctly entered into the discount allowed but were entered on the wrong side of the receivables ledger control account. Once these errors have been corrected the suspense account is cleared. What was the balance on the suspense account before these errors were corrected? ABCD100$120 Cr $280 Cr $280 Dr $120 Cr