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Class: IX-C Principles of Accounts 7110 Worksheet of MCQ’s Paper 01, Year 2015

1 What is prepared by a book-keeper? [7110/12/O/N/15] 7 Sally buys goods and is allowed a discount for early payment.
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A appropriation account How does Sally record this discount?
B cash book
C income statement
D statement of financial position

2 A trader provided the following information.

8 Which item is represented by a debit balance on a ledger


account?
A accrued expense
B liability
C prepaid expenses
What was the total of the non-current liabilities? D revenue
A $35 000 B $61 000 C $76 000 D $91 000 _____________________

7110/12/M/J/15
3 Which item would be recorded by a credit entry in an
account? 1 How should the owner of a business use his financial
A a decrease in capital statements?
B a decrease in liabilities A to calculate the cash drawings for the year
C an increase in assets B to determine the amount due to trade payables
D an increase in capital C to measure the change in the bank balance
D to monitor the progress of the business
4 Harvey bought goods on credit from Janet. The goods
were unsuitable and Harvey returned them 2 Sarah sells goods on credit to Zafar.
to Janet. How is this recorded in Sarah’s ledgers?
Which document did Harvey send to Janet?
A credit note
B debit note
C invoice
D statement of account

5 On 1 May Bashir purchases goods on credit with a list


price of $200. He is given a trade discount
of $20. If payment is made within 28 days a cash 3 Gail’s statement of financial position included the following.
discount of $10 will be given.
Which amount is credited to the supplier’s account on 1
May?
A $170 B $180 C $190 D $200

6 Farouk sells goods on credit. A cheque from Ahmed, a


credit customer, was dishonoured by the What was Gail’s capital?
bank. A $100000 B $148000 C $150000 D $152000
How does Farouk record this?
4 Hassan maintains a sales journal, purchases journal, sales
returns journal and a purchases returns journal. At the end of
each month, Hassan transfers the totals of these journals to the
ledger.
Which entries will Hassan make in his ledger to record these
totals?
6 A trader received his monthly bank statement. 6 On 1 April a trader’s cash book showed a debit balance of
Which item(s) may have appeared on this statement? $3204.
1 bank charges No entry had been made in the cash book for bank charges of
2 credit transfers $78.
3 unpresented cheques Deposits of $288 had not been credited by the bank.
What was the credit balance on the bank statement on 1 April?
A 1 and 2 A $2838 B $2994 C $3414 D $3570
B 1 only __________________________
C 2 and 3
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D 3 only
1 How should the owner of a business use his financial
________________________
[7110/11/O/N/15]
statements?
1 A business provided the following information. A to calculate the cash drawings for the year
B to determine the amount due to trade payables
C to measure the change in the bank balance
D to monitor the progress of the business

2 A business had the following assets and liabilities.

What was the total of the liabilities? It took out a bank loan, $2000, to pay for a motor vehicle.
A $4420 B $4770 C $4830 D $4920 What was the owner’s capital after the transaction?
A $17000 B $19000 C $21000 D $23000
2 Which item would be recorded by a credit entry in an
account? 3 Sarah sells goods on credit to Zafar.
A a decrease in capital How is this recorded in Sarah’s ledgers?
B a decrease in liabilities
C an increase in assets
D an increase in capital

4 How are the totals of the sales journal and the


purchases returns journal recorded in the ledger?

5 Hassan maintains a sales journal, purchases journal, sales


returns journal and a purchases
returns journal.
At the end of each month, Hassan transfers the totals of these
journals to the ledger.
Which entries will Hassan make in his ledger to record these
totals?
5 Sally buys goods and is allowed a discount for early
payment.
How does Sally record this discount?

6 At the end of April the discount column on the debit side of a


three column cash book showed
entries of $80 and $60.
How is this recorded in the ledger?