1.0  Define a bill of exchange

2.0  Explain the process of “discounting” a bill of exchange

3.0  “Bills receivable” in the books of a business record amounts of money owing to the business. True or false?

4.0  What are the accounting entries when a bill with a face value of $5,000 is discounted for $4,750?

1.0  List the seven books of prime entry

2.0  What is meant by an “imprest system”?

3.0  Why is it necessary for businesses to maintain a sale ledger?

4.0  What types of transaction are recorded in the journal?

5.0  List four types of error which may occur in maintaining a bookkeeping system

6.0 State which books of original entry the following transactions would be entered into:

(a) ABC pays you $100
(b) You return goods to AB to the value of $100
(c) Customer AC returns goods to the value of $150
(d) You pay Jim $500
(e) You receive an invoice from A for $120
(f) Your accounts clerk ask you for $15 to buy stationery
(g) You send customer D an invoice for $700
(h) Your business pays Mr.C, a supplier $1000

7.0 What is the difference between the cash book and the petty cash book?