ch 7, 8.docx

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Accountancy Learning Academy (ALA). AFD. FA1. Ch7,8. Test paper.

1. Which of the following statements is/are correct?1. Creditor control accont is also !nown accont

pa"a#le control accont$. Creditor control accont is also referred to as

prchase ledger control accont%. Creditor control accont is also called prchase

ledger acconta. 1 and % are correct#. % and $ are correct

c. 1 and $ are correct 2. A contra entr" of &1''' #etween sales ledger and

prchase ledger was omitted from creditor control

accont. Which of the following is the correct

ad(stment in a creditor control accont?a. &1''' shold #e credited b. &1''' shold #e de#itedc. )o ad(stment re*ired

3. What will #e de#ited, if #siness #oght goods on

credit from +r. Ali?a. rchases accont -ight Answer#. +r. Ali accontc. Cash accont

d. 0ales accont4. siness transactions are recorded23

a. in chronological order#. wee!l"c. at the end of the month

5. A creditor control accont is a !ind of 4444444 since it

can #e sed to pro5ed the arithmetic correction of

acconting recorda. rchases accont#. Creditor accontc. Trial #alanced. 6pense accont

6. The total of prchases retrn is entered on the which

side of a creditor control accont?a. De#it side#. Credit sidec. )o acconting treatment re*ired

7. Discont recei5ed is entered on the which side of a

creditor control accont?a. De#it side#. Credit side c. )o acconting treatment re*ired

8. enerall", the total amont prchases is ta!en from

which #oo! of accont for the prpose of preparing

Creditor control accont?a. Cash #oo!

#. an! statementc. rchase da" #oo!d. rchases ledger acconts 9

9. A creditor control accont contains the following

transaction2

an! : &1''

rchases:&$''

Discont recei5ed : &1''

alance c/d : &%''

Wor! ot the #alance #/da. &1''#. &$''c. &%''d. &;''

10.Control acconts are most commonl" sed for which

of the following prposes?a. reparing cash

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d. Dr. rchases accont

Cr. +. rownEs accont -sales ledger18.A compan" allows disconts to its cstomers for earl"

pa"ment. The do#le entr" to post the disconts is2a. Dr. Discont allowed accont

Cr. CstomersE accont#. Dr. Disconts allowed accont

Cr. 0ales accontc. Dr. 0ales accont

Cr. CstomerEs accontd. Dr2 0ales accont

Cr. an! accont19.A credit entr" of ;' on AGs accont in the #oo!s of

cold ha5e arisen #"a. A #"ing goods on credit from #. pa"ing A @;'c. pa"ing A @;'d. A retrning goods to

20. n the acconts of H, which of the following do#le

entries is the correct wa" to record goods retrned #"

I, a credit cstomer?a. Dr 0ales Cr. IEs accont

#. Dr. etrns inward Cr. IEs accontc. Dr. 0ales Cr. HEs accontd. Dr. HEs accont Cr. etrns inward

21.Which of the following statements is not the prpose

of a sales ledger control accont?a. A sales ledger control accont pro5ides a chec!

on the arithmetic accrac" of the personal ledger.#. Control acconts deter fradc. A sales ledger control accont helps locate errors

in the trial #alance22. This of the following #est descri#es the meaning of

JrchasesE?a. oods #oght for resale#. oods #oght on creditc. Asset prchasesd. oods paid for

23.0ppliersE personal acconts are fond in the2a. eneral ledger#. 0ales ledgerc. rchases ledgerd. Cash oo!

24.Disconts recei5ed are2a. i5en #" s when we sell goods on credit#. Dedcted #" s when we pa" or accontsc. Dedcted when we recei5e cashd. )one of these

25. The total of the rchases Bornal is transferred tothe2a. De#it side of the rchases Da" Accont in the

rchases Kedger#. De#it side of the rchases Accont in the

eneral Kedgerc. Credit side of the rchases Accont in the

rchases Kedgerd. Credit side of the rchases Accont in the

eneral Kedger26.Which of the following items cold appear on the

creditside of a De#tors ledger control accont?

1. Cash recei5ed from cstomers2. ad de#ts written o=3. ncrease in allowance for do#tfl de#ts4. Disconts allowed5. 0ales

6. Credits for goods retrned #" cstomers7. Cash refnds to cstomersa. -1, -$, -@ and -Lb. -1, -$, -@ and -7c. -%, -@, -; and -Ld. -; and -7

27.Which of the following is the correct (ornal entr" torecord a credit note issed to cstomer for goodsretrned?a. De#it 0ales retrns Credit Cashb. De#it Cash Credit 0ales retrnsc. De#it Trade recei5a#les Credit 0ales retrnsd. De#it 0ales retrns Credit Trade recei5a#les

28. n Bne $''8 Kara #oght goods for &1$,'''. 0hepaid &11,''' of this #" che*e and agreed a %' da"credit period for the #alance. 0he intends to #"more goods for &1%,'''in Bl" $''8.What 5ale shold #e reported for KaraEs pa"a#lesat %' Bne $''8?a. &$;,'''#. &1@,'''c. &1%,'''d. &1,'''

29.A5alon gi5es his cstomers indi5idal trade discontsfrom the list price and a general ;Mcash discont forall in5oices settled within 7 da"s of isse. A newcstomer, )ola5a negotiates a $;M trade discont.is transactions dring Bne are2 Bne 1$ "s goodswith a ;,''' list price Bne 1; etrns goods with a1,''' list price as falt" Bne 1L a"s half of the net#alance on his accont. ow mch does )ola5a oweA5alon at the end of Bne?a. 1,@$;#. 1,;''c. $,'''d. $,8;'

30.+anish #"s goods on credit from Kisa #t nds thatsome of them are falt".What docment wold +anish retrn to Kisa with thefalt" goods?a. 0tatement#. De#it notec. 0ales in5oiced. rchase in5oice

31.Which item will appear as a de#it #alance in theledger acconts?a. Capital#. an! o5erdraftc. Creditorsd. 0toc!

32.Which one of the following is the correct posting fromthe prchase da" #oo!?a. Dr eneral ledger prchase accont, Cr

0ppliersE acconts in prchase ledgerb. Dr eneral ledger prchase accont, Cr Cash

#oo!c. Dr 0ppliersE acconts in prchase ledger, Cr

eneral ledger prchase accontd. Dr Cash #oo!, Cr eneral ledger prchase accon

t33. Bonathan sends a de#it note to one of his sppliers.

n which of BonathanEs #oo!s of prime entr" woldthis #e recorded?

a. 0alesb. rchasesc. 0ales retrnsd. rchase retrns

34. n which #oo!s of prime entr" wold the followingtransactions #e entered?

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A credit sale for %87 and a cash sale of $'' less1'M discont for cash pa"ment.a. The cash #oo! and sales da" #oo!#. The pett" cash #oo! and sales da" #oo!c. The prchase da" #oo! and sales da" #oo!d. The (ornal and cash #oo!

35.Nhan #oght goods for &$$', less $' M tradediscont, on credit from AOiO. Nhan later retrnedhalfof these goods. AOiO entered the retrns in his salesretrns (ornal. ow will AOiO post this transaction toNhanEs ledger accont?a. credit &88#. de#it &88c. credit &11'd. de#it &11'

36.Which docment is issed #" a spplier when acstomer retrns goods?a. credit note#. de#it notec. in5oiced. statement

37.$; items are sold at &1' each with trade discont at$' M and cash discont is $ M if acconts are settled

within 7 da"s. ow mch wold #e recorded in thesales (ornal?a. &1PL#. &$''c. &$@;d. &$;'

38.What is called the s"stem of recording transactions#ased on dal concept?a. aditing#. do#le accont s"stemc. do#le entr" s"stemd. single entr" s"stem

39.What is the alternati5e name of retrns otward?a. carriage inwards#. carriage otwardsc. prchases retrnsd. sales etrns

40.Wh" shold a sole trader record all the nancialinformation a#ot her #siness?a. #ecase she is re*ired to do so #" law#. #ecase she needs to pa" her creditors on timec. so that she can prepare nal accontsd. so that she !nows how mch her de#tors owe her

41. The information for preparing a Control accont iso#tained from2a. The eneral Bornalb. The #oo!s of prime entr"

c. The Cash oo!d. The Kedger

42.Which of the following will not appear in the Tradeecei5a#les Control accont2a. Amonts recei5ed from credit cstomerb. Credit 0alesc. ad de#ts written o= d. Cash sales

43.Which of the following will not appear in the rchaseKedger Control accont2a. Discont allowed#. Credit prchasesc. Amonts paid to trade creditors

d. etrns otwards44. The periodical totals of the etrns nwards Da" oo!are2a. De#ited to the Trade ecei5a#le Control accont#. Credited to the Trade a"a#les Control accontc. De#ited to the Trade pa"a#les Control accont

d. Credited to the Trade ecei5a#les Control accont45. The periodical totals of the Discont Colmn on the

receipt side of the Cash oo! are2a. De#ited to the Trade a"a#les Control accont#. Credited to the Trade a"a#les Control accontc. Credited to the Trade ecei5a#les Control accontd. De#ited to the Trade ecei5a#les Control accont

46.Q=set #" contra is acconted for #"2a. A de#it in the 0ales Kedger Control and a credit in

the rchases Kedger Control acconts#. A de#it and a credit respecti5el" in the accont of

the particlar cstomer appearing in the 0alesKedger and in the rchases Kedger.

c. A de#it in the prchase Kedger Control and acredit in the 0ales Kedger Control acconts

d. A com#ination of entries stated in -a a#o5e aswell as in -d #elow

47.As at 1 Agst $'1$ the Trade ecei5a#les ledgerhad $1L,@'' de#it #alances and 11,@;' credit#alance. Credit sales in Agst were ;8$,;;' andsales retrns %1,L''. @P8,$'' has #een recei5edfrom credit cstomers. dentif" the de#it #alance #"the month end assming that the onl" additional

information is Discont allowed was 1@,@'' andcredit #alances #" month end were 1P,7;'a. 1LL,L''#. $L%,';'c. $;@,7;'

48.Which of the following is )QT correct? 0elect correctoption2a. Decrease in Assets will #e credit#. Decrease in Kia#ilities will #e de#itc. Decrease in 6penses will #e de#itd. Decrease in e5ene will #e de#it

49.Which of the following is a F0T prodct ofacconting c"cle? 0elect correct option2a. Rocher#. eneral Bornalc. eneral Kedgerd. Financial 0tatements

50. The process of transferring (ornal entr" informationto the ledger is called2 0elect correct option2a. BornaliOing#. ostingc. alancingd. Anal"Oing

Answers2

s.n

o

s.n

o1 c $L a

$ # $7 d

% a $8

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@ a $P

; c %' #

L a %1 d

7 a %$ a

8 c %% d

P c %@ a

1' d %; a

11 d %L a1$ # %7 #

1% a %8 #

1@ # %P c

1; a @' c

1L c @1 #

17 d @$ d

18 a @% a

1P d @@ d

$' # @; c

$1 c @L c

$$ c @7 #$% a @8 c

$@ # @P a

$; a ;' #

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ch 7, 8.docx