Financial Accounting

Question 1

1The owner withdraws GH¢500 cash for personal use. The entry is

Easy

A. debit drawings, credit cash B. debit expenses, credit cash C. debit cash, credit drawings D. debit capital, credit drawings

Question 2

2Goods returned to a supplier are recorded in the

Easy

A. returns inwards day book B. cash book C. sales day book D. returns outwards day book

Question 3

3When a business buys goods on credit from Mensah, the entry is

Easy

A. debit Mensah, credit purchases B. debit purchases, credit Mensah C. debit purchases, credit cash D. debit cash, credit purchases

Question 4

4Goods worth GH¢500 taken by the owner for personal use are recorded by

Hard

A. debiting drawings and crediting purchases B. debiting sales and crediting cash C. debiting capital and crediting sales D. debiting purchases and crediting drawings

Question 5

5The petty cash book is used for

Easy

A. small cash payments B. bank loans C. large credit sales D. capital introduced

Question 6

6A two-column cash book has columns for

Easy

A. sales and purchases B. assets and liabilities C. cash and bank D. debit and discount

Question 7

7The owner takes goods for personal use. The entry is

Medium

A. debit sales, credit cash B. debit capital, credit sales C. debit drawings, credit purchases D. debit purchases, credit drawings

Question 8

8Under the imprest system, the petty cashier is

Easy

A. never reimbursed B. paid a salary from it C. given a new float every day D. reimbursed the amount spent at the end of each period

Question 9

9A contra entry in a three-column cash book occurs when

Hard

A. goods are bought on credit B. a debtor pays by cheque C. cash is paid into the bank or withdrawn for office use D. discount is received

Question 10

10The purchase of a motor van on credit is first recorded in the

Easy

A. general journal B. sales day book C. petty cash book D. purchases day book