Multiple Choice Questions 4.

Question 1: The double entry required to record transactions.

A manufacturer of paper products buys rolls of paper from a supplier for
£3,600. Payment for these rolls of paper will be made in 30 days' time.
What is the double entry required to record this transaction in the books
of account?
a) Debit purchases of paper £3,600, Credit cash £3,600.
b) Debit purchases of paper £3,600, Credit trade payables £3,600.
c) Debit trade payables £3,600, Credit purchases of paper £3,600.
d) Debit trade payables £3,600, Credit cash £3,600.

Question 2: The double entry required to record transactions.

Gina is an electrician. She buys a new van to use in her business. The
van cost £15,000. Gina paid cash to buy this van. What is the double
entry required to record this transaction in Gina's books of account?
a) Debit van £15,000, Credit cash £15,000.
b) Debit cash £15,000, Credit van £15,000.
c) Debit van £15,000, Credit trade payables £15,000.
d) Debit trade payables £15,000, Credit van £15,000.

Question 3: The double entry required to record transactions.

A retailer receives £150 in cash from a customer for a cash sale. What is
the double entry required to record this transaction in the books of
account?
a) Debit sales £150, Credit cash £150.
b) Debit sales £150, Credit trade receivables £150.
c) Debit trade receivables £150, Credit sales £150.
d) Debit cash £150, Credit sales £150.
Question 4: The double entry required to record transactions.
A clothing retailer buys goods on credit from its suppliers. A payment of
£2,800 is made to a supplier of shirts. What is the double entry required
to record this transaction in the books of account?
a) Debit purchases of shirts £2,800, Credit cash £2,800.
b) Debit purchases of shirts £2,800, Credit trade payables £2,800.
c) Debit trade payables £2,800, Credit cash £2,800.
d) Debit trade payables £2,800, Credit purchases of shirts £2,800.

Question 5: The double entry required to record transactions.

Joe visits the stationers on his way to work. He uses £260 of his
company's cash to buy paper and ink for use in his business. What is the
double entry required to record this transaction in Joe's books of
account?
a) Debit cash £260, Credit stationery £260.
b) Debit stationery £260, Credit cash £260.
c) Debit stationery £260, Credit trade payables £260.
d) Debit trade payables £260, Credit stationery £260.

Question 6: The double entry required to record transactions.

Bigpipes Engineering Limited sells goods for £6,500 on credit to Bolls
Bourse plc. What is the double entry required to record this transaction
in Bigpipes Engineering Limited's books of account?
a) Debit cash £6,500, Credit sales £6,500
b) Debit sales £6,500, Credit trade receivables £6,500
c) Debit sales £6,500, Credit cash £6,500
d) Debit trade receivables £6,500, Credit sales £6,500

Question 7: The double entry required to record transactions.

Bigpipes Engineering Limited buys a new piece of machinery on credit
for £30,000. What is the double entry required to record this transaction
in Bigpipes Engineering Limited's books of account?
a) Debit machinery £30,000, Credit trade payables £30,000.
b) Debit cash £30,000, Credit machinery £30,000.
c) Debit machinery £30,000, Credit cash £30,000.
d) Debit trade payables £30,000, Credit machinery £30,000.

Question 8: The double entry required to record transactions.

A manufacturer of electrical goods makes all its sales on credit. The
manufacturer receives £5,000 from a customer to pay for electrical
goods delivered to the customer 30 days ago. What is the double entry
required to record this transaction in the books of account of the
manufacturer of electrical goods?
a) Debit cash £5,000, Credit sales £5,000.
b) Debit sales £5,000, Credit trade receivables £5,000.
c) Debit cash £5,000, Credit trade receivables £5,000.
d) Debit trade receivables £5,000, Credit sales £5,000.

Question 9: The double entry required to record transactions.

Hena runs her own accountancy practice. On 30 September, Hena
withdraws £2,500 from the practice's bank account to pay the monthly
instalment on the mortgage on her house. What is the double entry
required to record this transaction in the accountancy practice's books of
account?
a) Debit cash £2,500, Credit mortgage £2,500.
b) Debit mortgage £2,500, Credit cash £2,500.
c) Debit capital £2,500, Credit cash £2,500.
d) Debit cash £2,500, Credit capital £2,500.