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

The below questions represent some accounting questions on recording of transactions.

The following multiple-choice practice questions are extracted from Certified Accounting Technician (CAT) Scheme Paper 1 [ Refer Answers at the end of the questions ]


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:





Opening balance


Travelling expenses


Sale of stamps


Subsistence expenses


Sale of paper


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:

Net price

Sales tax

5 Jan

To Maurice



19 Jan

To Harris



28 Jan

To Merton



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?

Dr Cash

Cr Sales

(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


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

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