Basic Online Bookkeeping & Accounting Guide » BOOKKEEPING/ACCOUNTING QUESTIONS & ANSWERS

Bookkeeping Test Question And Answer on Books of Original Entry

slang — Sat, 05 Jun 2010 11:17:43 +0000

Question No.1:-
State which books of original entry the following transactions would be entered into:

(a) ABC pays you $100
(b) You return goods to AB to the value of $100
(c) Customer AC returns goods to the value of $150
(d) You pay Jim $500
(e) You receive an invoice from A for $120
(f) Your accounts clerk ask you for $15 to buy stationery
(g) You send customer D an invoice for $700
(h) Your business pays Mr.C, a supplier $1000

Answer to Question. No.1:-
(a) Cash book
(b) Purchase returns day book
(c) Sales returns day book
(d) Cash book
(e) Purchase day book
(f) Petty cash book
(g) Sales day book
(h) Cash book

Question No 2:-
Name the seven books of original entry

Answer to Question No.2:-
(1) Sales day book,
(2) Sales returns day book
(3) Purchase day book
(4) Purchase return day book
(5) Cash book
(6) Petty cash book
(7) Journal

Question No.3:-
What is the difference between the cash book and the petty cash book?

Answer to Question No.3:
The cash book records amounts into or out of the bank account. The petty cash book records payments of small amounts of cash.

BOOKKEEPING DOUBLE ENTRY RULES/PRINCIPLES for BAD DEBTS RECOVERED:

slang — Wed, 28 Apr 2010 12:30:58 +0000

Whenever a debtor cannot pay, it becomes a bad debt which in reality is an expense as it is a loss for the firm.

The basic bookkeeping rules or principles is simply to debit: Bad Debts Account and Credit Debtors Account

So how do we treat the books of accounts when a firm manages to receive money from a deliquient debtor?

Following is the BOOKKEEPING DOUBLE ENTRY RULES/PRINCIPLES for BAD DEBTS RECOVERED:

{ Remember that any bad debts recovered is a gain to the firm and should always be a credit entry.}

The journal double entry to record bad debts recovered are:

(a) Debit:Debtors

Credit:Bad debt recovered

[ this is to reinstate the debt previous owed by the debtor]

(b) Debit:Bank

Credit:Debtors

[ To record the receipt of debts from debtors]

Answer Sheet To True Or False Accounting Test Paper On Basic Accounting Questions

slang — Fri, 11 Sep 2009 04:04:26 +0000

Below are the answers to the various topics on Basic accounting questions on:

True or False Accounting Test Paper(with Answer) on Depreciation accounting

slang — Fri, 11 Sep 2009 03:53:29 +0000

Append below some questions to test the knowledge of those who have just studied topic on depreciation accounting:

[click here for answer]

True or False Accounting Test Paper(with answers) on Final Accounts

slang — Fri, 11 Sep 2009 03:49:13 +0000

Append below some questions to test the knowledge of those who have just studied topic on final accounts:

[click here for answer]

True Or False Accounting Test Paper (with answer) On Ledger Account

slang — Fri, 11 Sep 2009 03:44:59 +0000

Append below some questions to test the knowledge of those who have just studied topic on ledger account:

[click here for answer]

True Or False Accounting Test Question(With Answer) On Bank Reconciliation Statement

slang — Fri, 11 Sep 2009 03:40:42 +0000

Append below some questions to test the knowledge of those who have just studied topic on bank reconciliation statement:

[click here for answer]

True Or False Basic Accounting Questions ( with Answer) On SUBSIDIARY BOOKS

slang — Fri, 11 Sep 2009 03:33:15 +0000

Append below some questions to test the knowledge of those who have just studied topic on subsidary books:

[click here for answer]

True or False Accounting Test Paper on ACCOUNTING CONCEPTS & DOUBLE ENTRY SYSTEM

slang — Fri, 11 Sep 2009 03:26:37 +0000

Append below some questions to test the knowledge of those who have just studied topic on accounting concepts and double entry system:

[click here for answer]

Accounting Test Question With Answer On Correction Of Errors

slang — Thu, 10 Sep 2009 08:42:10 +0000

QUESTION:Mr. A extracted a Trial Balance at 31 st December 2005 and found that it did not balance. He posted the difference to a Suspense Account. Later he found the following errors which accounted for the difference:

The total of $3,650 for Discount Allowed for the month of July’05 had been posted to the credit side of Discount Received Account.
A payment of $ 2,100 to Mr A from a debtor Mr XY had been posted to the credit of Mr TEY in error.
Mr A had paid $ 2,640 wages and supplied materials costing $960 to his own employees in building a store at the rear of his factory. No adjustment had been made.
A payment of $560 for Postage had been posted to that account as $650
Mr A bought new fitting for his factory costing $1,800 but this transaction had been posted to the Purchases Account
A payment by Mr A of $960 for an electricity bill had been entered in the Cash Book but the double entry had not been made.

Required:

(a) Prepare the journal entries necessary to correct the errors and omission (19 marks)

(b) Prepare the Suspense Account showing the original difference in the Trial Balance ( 6 marks )

ANSWER(a) Mr. A’s Journal Entries

Item No	Date	Particulars	Dr($)	Cr($)
1	Dec 31	Discount Received A/c	365
		Discount Allowed A/c	365
		Suspense A/c
		Being correction of Discount Allowed $365 wrongly credited to Discount Received Account

2	Dec 31	Mr TEY Account	2,100
		Mr XY Account		2,100
		Being correction of payments $2,100 by Mr XY wrongly credited to Mr TEY account

3	Dec 31	Drawings Account	3,600
		Wages Accoount		2,640
		Purchases Account		960
		Being correction of error on Wages paid $2,640 and material used $960 for own store)

3	Dec 31	Drawings Account	3,600
		Wages Accoount		2,640
		Purchases Account		960
		Being correction of error on Wages paid $2,640 and material used $960 for own store)

3	Dec 31	Drawings Account	3,600
		Wages Accoount		2,640
		Purchases Account		960
		Being correction of error on Wages paid $2,640 and material used $960 for own store)

3	Dec 31	Drawings Account	3,600
		Wages Accoount		2,640
		Purchases Account		960
		Being correction of error on Wages paid $2,640 and material used $960 for own store)

3	Dec 31	Drawings Account	3,600
		Wages Accoount		2,640
		Purchases Account		960
		Being correction of error on Wages paid $2,640 and material used $960 for own store)

(b) Suspense Account

Date		$	Date		$
Dec 31	Difference as per Trial Balance	817	Dec 31	Discount allowed	365
	Postage	9		Discount received	365
				Electricity	96
		826			826