41. Which of the following are personal accounts?

(i) Buildings (ii) Wages (iii) Debtors (iv) Creditors

A. (iii) and (iv) only

B. (ii) and (iv) only.

C. (i) and (iv) only

D. (ii) and (iii) only

E. (i), (ii) and (iii) and (iii)

42. When Lee makes out a cheque for 50 and sends it to Young, then Lee is known as

A. The payee

B. The banker

C. The drawer

D. The creditor.

E. None of the above

43. If you want to make sure that your money will be safe if cheques sent are lost in the post, you should

A. Not use the postal service in future

B. Always pay by cash

C. Always take the money in person

D. Cross your cheques Account Payee only, Not Negotiable

E. None of the above

44. When banking money in to your current account you should always use

A. A cheque book

B. A paying-in slip

C. A cash book

D. A general ledger.

E. None of the above

45. A debit balance of 100 in a cash account shows that

A. There was 100 cash in hand

B. Cash has been overspent by 100

C. 100 was the total of cash paid out

D. The total of cash received was less than 100.

E. None of the above

46. 50 cash taken from the cash till and banked is entered

A. Debit cash column 50: Credit bank column 50

B. Debit bank column 50: Credit cash column 50

C. Debit cash column 50: Credit cash column 50

D. Debit bank column 50: Credit bank column 50.

E. None of the above

47. A credit balance of 200 on the cash columns of the cash book would mean

A. We have spent 200 more than we have received

B. We have 200 cash in hand

C. The bookkeeper has made a mistake

D. Someone has stolen 200 cash.

E. None of the above

48. Posting the transactions in bookkeeping means

A. Making the rst entry of a double entry transaction

B. Entering items in a cash book

C. Making the second entry of a double entry transaction

D. Something other than the above.

E. None of the above

49. A cash discount is best described as a reduction in the sum to be paid

A. If payment is made within a previously agreed period

B. If payment is made by cash, not cheque

C. If payment is made either by cash or cheque

D. If purchases are made for cash, not on credit.

E. None of the above

50. Discounts received are

A. Deducted when we receive cash

B. Given by us when we sell goods on credit

C. Deducted by us when we pay our accounts

D. Added to discount allowed in the P & L

E. None of these.

51. The total of the Discounts Allowed column in the Cash Book is posted to

A. The debit of the Discounts Allowed account

B. The debit of the Discounts Received account

C. The credit of the Discounts Allowed account

D. The credit of the Discounts Received account

E. None of the above

52. Sales invoices are rst entered in

A. The Cash Book

B. The Purchases Journal

C. The Sales Account

D. The Sales Journal

E. None of the above

53. The total of the Sales Journal is entered on

A. The credit side of the Sales Account in the General Ledger

B. The credit side of the General Account in the Sales Ledger

C. The debit side of the Sales Account in the General Ledger

D. The debit side of the Sales Day Book.

E. None of the above

54. Given a purchases invoice showing 5 items of 80 each, less trade discount of 25 per cent and cash discount of 5 per cent, if paid within the credit period, your cheque would be made out for

A. 285

B. 280

C. 260

D. 55

D. None of these.

55. An alternative name for a Sales Journal is

A. Sales Invoice

B. Sales Day Book

C. Daily Sales

D. Sales Ledger.

E. None of the above

56. Entered in the Purchases Journal are

A. Payments to suppliers

B. Trade discounts

C. Purchases invoices

D. Discounts received

E. None of the above

57. The total of the Purchases Journal is transferred to the

A. Credit side of the Purchases Account

B. Debit side of the Purchases Day Book

C. Credit side of the Purchases Book

D. Debit side of the Purchases Account.

E. None of the above

58. Credit notes issued by us will be entered in our

A. Sales Account

B. Returns Inwards Account

C. Returns Inwards Journal

D. Returns Outwards Journal.

E. None of the above

59.The total of the Returns Outwards Journal is transferred to

A. The credit side of the Returns Outwards Account

B. The debit side of the Returns Outwards Account

C. The credit side of the Returns Outwards Book

D. The debit side of the Purchases Returns Book.

E. None of the above

60. We originally sold 25 items at 12 each, less 331/3 per cent trade discount. Our customer now returns 4 of them to us. What is the amount of credit note to be issued?

A. 48

B. 36

C. 30

D. 32.

E. None of the above