Bookkeeping 1 Recap

1. Which of these is NOT a capital transaction?

Purchase of a car for the business

Payment of wages

Purchase of a new telephone system

Payment for warehouse machinery

2. What is an individual trading as business on his/her own is known as?

Private limited company

Sole trader

Partnership

Public limited company

3. Which of the following is a CREDIT?

Asset

Liability

Purchase

Expense

4. Which of these is NOT a cash transaction?

A fuelling station sells petrol and is paid by cheque

An office buys stationery and settles immediately by cash

A cash and carry sells goods on account and is paid thirty days later

A supermarket sells food to a customer who pays immediately by debit card

5. What is the correct formulas for the accounting equation?

Assets + liabilities = capital

Assets - liabilities = capital

Assets = capital - liabilities

6. Which of the following is a DEBIT?

Rental income

Capital introduced

Bank overdraft

Trade receivables

7. Which system can be used to top up the petty cash?

Mobile phone top up

A good one

Invest

Imprest

8. What is the current rate of VAT?

5%

15%

17.5%

20%

9. To record the entries of a purchase returns day book in the general ledger which accounts do you need?

Purchases - VAT - Purchase Ledger Control

Purchases - VAT - Purchase Returns

Purchase Returns - VAT - Purchase Ledger Control

10. A "T" for an individual customer to process their invoices, credit notes and payments, can be found in which ledger?

Sales ledger

Purchase ledger

General ledger