1.0  What is the distinction between personal accounts and impersonal accounts?

2.0  A debit entry in the cash account signifies a receipt of cash. True or false?

3.0   What are the ledger entries necessary to record: 

(a)    payment of a rent bill?

(b)   purchase of goods on credit

 4.0  List three types of error which would not be disclosed by a trial balance

 5.0  Describe the double entry in respect of:

(a)    an accrued rental payment

(b)   a prepaid subscription charge

6.0  If a higher provision is required for doubtful debts, the provision account should be debited with the amount of the increase. True or false?

7.0  How is accumulated depreciation disclosed in the balance sheet?

8.0  Describe the ledger account entries in respect of the disposal of a fixed asset

1.0    Define depreciation 

2.0    What is the “depreciable amount” of a fixed asset? 

3.0    Describe the method of calculating a depreciation charge under: 

(a)    the straight line method

(b)   the reducing balance method

4.0    In the later years of an asset’s life, depreciation charges are higher if the straight line method is used than if the reducing balance method is used. True or false?

5.0    What effect does a change in an asset’s estimated useful life have on the depreciation charge?

6.0    The net book value of a fixed asset is intended to be an approximation of its market value. True or false?

7.0    How is the profit or loss on disposal of a fixed asset calculated?