Accounting Test Question & Answer BK No 1 On Bookkeeping To Trial Balance

Question 1

Hywel purchases goods on credit with a list price of $100. The supplier gives Hywel a trade discount of 15% and also offers a cash discount of 10% for payment within 30 days.

What is the amount that Hywel will debit to his purchases account?
(a) $115.00
(b) $85.00
(c) $76.50
(d) $75.00

Question 2

Which of the following best describes an invoice?
(a) A document produced by a purchaser detailing items purchased
(b) A document produced by a seller detailing items sold
(c) A document produced by a seller following the return of goods
(d) A document produced by a seller listing monthly transactions

Question 3

The following is a summary of the petty cash transactions for a week:

Petty cash is maintained using the imprest system.

What sum should be reclaimed by the cashier at the end of the week?

(a) $150
(b) $340
(c) $400
(d) $500

Question 4
Which of the following is a current liability?

(a) Closing inventory
(b) Opening inventory
(c) Petty cash
(d) Bank overdraft

Question 5
Which of the following errors will become apparent when drawing up a trial balance?

(a) A credit purchase was completely omitted from the accounting records
(b) A credit sale was recorded as a cash sale
(c) The payment of wages was debited to the rent account instead of the wages account
(d) A cash sale was recorded correctly in the sales account and credited in the bank account

Question 6
Carion sells the following goods for cash during January:

What are the correct entries in Carion’s general ledger?

(a) Dr sales $1,799, Dr sales tax $268, Cr cash $2,067
(b) Dr cash $2,067, Cr sales $1,799, Cr sales tax $268
(c) Dr sales $1,531, Dr sales tax $268, Cr cash $1,799
(d) Dr cash $1,779, Cr sales $1,531, Cr sales tax $268

Question 7
Annabel’s cash book shows her to be $2,030 overdrawn. A bank reconciliation, however, shows that a standing order payment for $365 had been entered in the cash book twice, and that a dishonoured customer’s cheque for $275 had been debited in the cash book rather than credited.

What is Annabel’s true overdraft position?

(a) $1,845
(b) $1,940
(c) $2,120
(d) $2,215

Question 8
An employee is paid $4.50 hourly, and works Monday to Friday inclusive for eight hours daily, Saturday four hours at
time-and-a-half, and Sunday five hours at double time.

What is the weekly gross pay of the employee?

(a) $220.50
(b) $229.50
(c) $243.00
(d) $252.00

Question 9
Iwan’s payables ledger showed that $2,300 was owed to suppliers at the start of the week. During the week Iwan made purchases of $3,900 although he paid $900 of this in cash. He also paid suppliers $1,000 by cheque.

What is the closing balance on his payables ledger?

(a) $4,000
(b) $4,300
(c) $5,200
(d) $6,100

Question 10
What business transaction would result in the following double entry being posted?

(a) The purchases of goods for resale on credit
(b) The receipt of cash from a credit customer
(c) A cash sale
(d) The banking of petty cash

Answers
Q1-b, Q2-b, Q3-b, Q4-d, Q5-d, Q6-d, Q7-d, Q8-d, Q9-b, Q10-c