Double – Entry bookkeeping

43 The double-entry system of bookkeeping normally results in which of the following balances on the ledger
accounts?

Debit balances: Credit balances:

A Assets and revenues Liabilities, capital and expenses
B Revenues, capital and liabilities Assets and expenses
C Assets and expenses Liabilities, capital and revenues
D Assets, expenses and capital Liabilities and revenues

44 Which of the following entries would be required to account for a reimbursement to the
petty cash float of $125 from the bank account?
A Dr Petty cash Cr Cash and bank
B Dr Cash and bank Cr Petty cash
C Dr Drawings Cr Petty cash
D Dr Drawings Cr Cash and bank

48 Andi started a taxi business by transferring a personally-owned car, at a value of $5,000, into the business.
What accounting entries are required to record this transaction?

A Dr Capital $5,000, Cr Car $5,000

B Dr Car $5,000, Cr Drawings $5,000
C Dr Car $5,000, Cr Capital $5,000
D Dr Drawing $5,000 Cr Car $5,000

52 Are each of the following statements about the accounting equation true or false?
True False
Business assets will always equal business liabilities
Business assets will always exceed business liabilities
Business assets include proprietor’s capital
Business liabilities include proprietor’s capital

53 Are each of the following statements about the journal true or false?
True False
The journal records all bank and cash transactions
The journal records all accounting transactions
The journal is a book of prime entry
The journal records all credit sales transactions
63 The petty cash balance at 30 November 20X9 was $25. The following transactions occurred
during November 20X9:
1 Refreshments were purchased at a cost of $7.25.
2 Travel expenses of $12.75 were reimbursed to an employee.
3 The cleaner was paid $15.

What was the petty cash float at 1 November 20X9?

A $25
B $60
C $35
D $50

64 Which of the following explains the imprest system of operating petty cash?
A Weekly expenditure cannot exceed a set amount
B The exact amount of expenditure is reimbursed at intervals to maintain a fixed float
C All expenditure out of the petty cash must be properly authorised
D Regular equal amounts of cash are transferred into petty cash at intervals

66 Lei operates the imprest system for petty cash. At 1 July there was a float of $150, but it was
decided to increase this to $200 from 31 July onwards. During July, the petty cashier received
$25 from staff for using the photocopier and a cheque for $90 was cashed for an employee.
In July, cheques were drawn for $500 for petty cash.
How much cash was paid out as cash expenses by the petty cashier in July?

70 In which book of prime entry would a business record the part-exchange value received for
a vehicle traded in when purchasing a new vehicle?
A The sales daybook
B The cash payments book
C The journal
D The non-current asset register