MC4 Which of the following is incorrect? Assets Capital (A) 7,850 (B) 8,200 (C) 9,550 (D) 6,540 Liabilities E 1,250 2,800 1,150 1,120 6,600 5,400 8,200 5,420 MC5 Which of the following statements is correct? Effect upon Assets Liabilities (A) We paid a creditor by cheque -Bank -Creditors (B) A debtor paid us 90 in cash +Cash +Debtors (C) Hall lends us 500 by cheque -Loan from Hall (D) Bought goods on credit +Stock +Capital MC6 Which of the following are correct? Accounts Assets (1) (1) Capital To record an increase a decrease an increase a decrease an increase a decrease Entry in the account Debit Credit Debit Credit Credit Debit (ii) Liabilities (A) (B) (C) (D) () and (i) (ii) and (iii) () and (ii) 6), (ii) and (iii) MC7 Which of the following are correct? Account to be debited Office furniture Bank Capital B Lee Account to be credited Cash P Sangster Bank Cash (1) Bought office furniture for cash (ii) A debtor, P Sangster, pays us by cheque (ill) Introduced capital by cheque (iv) Paid a creditor, B Lee, by cash (A) (). (ii) and (iii) only (B) (ii), (iii) and (iv) only (C) (), (ii) and (iv) only (D) () and (iv) only MC8 Which of the following are incorrect? Account to be debited Cash Office Equipment Account to be credited Van Suppliers Ltd ( Sold van for cash (in) Returned some of Office Equipment to Suppliers Ltd (iii) Repaid part of loan from C Charles by cheque (iv) Bought machinery on credit from Betterways Ltd Loan from Charles Bank Betterways Ltd Machinery (A) (B) (C) (D) (i) and (iv) only (ii) and (iv) only (i) and (iii) only (i) and (iii) only MC9 Which of the following best describes the meaning of 'Purchases? (A) Items bought (B) Goods bought on credit (C) Goods bought for resale (D) Goods paid for MC10 Which of the following should not be called "Sales? (A) Office fixtures sold (B) Goods sold on credit (C) Goods sold for cash (D) Sale of item previously included in "Purchases MC11 Of the following, which are correct? Account to be debited () Goods sold on credit to R Williams R Williams (ii) S Johnson returns goods to us Returns inwards (iii) Goods bought for cash Cash (iv) We returned goods to A Henry A Henry (A) () and (ii) only (B) (i) and (ii) only (0) (i) and (iv) only (D) (iii) and (iv) only Account to be credited Sales S Johnson Purchases Returns inwards MC12 Which of the following are incorrect? Account to be debited Cash Purchases C Barry Purchases Account to be credited Sales T Carter Returns outwards Cash (1) Goods sold for cash (in) Goods bought on credit from T Carter (iii) Goods returned by us to C Barry (iv) Van bought for cash (A) () and (iii) only (B) (iii) only (0) (in) and (iv) only (D) (iv) only MC13 Given the following, what is the amount of Capital? Assets: Premises 20,000; Stock 8,500; Cash 100. Liabilities: Creditors 3,000; Loan from A Adams 4,000 (A) 21,100 (B) 21,600 (C) 32,400 (D) 21,400 MC14 Which of the following is correct? (A) Profit does not alter capital (B) Profit reduces capital (C) Capital can only come from profit (D) Profit increases capital