FINANCIAL ACCOUNTING

MULTIPLE CHOICE QUESTIONS

Question 11

Which of the following will be considered as the source document for recording transactions in the cash receipts journal?

A. Cheque counterfoils

B. Bank statement

C. Duplicate credit note

D. Duplicate debit note

E. Original credit note

Question 13

A sales invoice for R750 was entered twice in the sales column of the sales journal and was posted twice to the personal account of a debtor, Mr T Maharaj. The transaction will be corrected by processing the following journal entries:

A. Debit sales account with R750 and credit the account of Mr T Maharaj with R750.

B. Debit sales account with R1 500 and credit the account of Mr T Maharaj with R1 500.

C. Credit sales account with R1 500 and debit the account of Mr T Maharaj with R1 500.

D. Debit sales account with R750 and debit the account of Mr T Maharaj with R750.

E. Credit sales account with R750 and credit the account of Mr T Maharaj with R750.

Question 16

The bookkeeper of TWIT Traders compared the June 20.19 bank statement with the cash journals for the same month and noted that the amount for cheque no: 831 in the bank statement was posted as R 675. The cheque was issued in favour of a creditor, I Moloi. The amount was incorrectly entered in the cash payments journal as R 765. The entry will be corrected by making an entry:

A. in the cash payments journal for R 90.

B. in the credit column of the bank reconciliation statement for R90.

C. in the debit column of the bank reconciliation statement for R90.

D. in the cash payments journal for R675.

E. in the cash receipts journal for R90