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.

Accounting Test Question No 1. On The Recording Process

slang — Sat, 20 Oct 2007 15:14:55 +0000

The below question is testing the candidate on the understanding on the recording process. You are required to understand the debit and credit rules, how to journalize and post to 3 column ledger as well as on the preparation of a trial balance .

Mr X opened X Company which engaged in consultancy business. Append below the transactions during March 2007:

Mar 1. Commence business by investing $25,000 cash and office equipment which is valued at $5,000

Mar 3. Bought $2,300 for office supplies on credit.

Mar 10 Have invoiced Company ABC for completed consultancy work of $3,100 of which $2,100 cash was received and the remaining still outstanding.

Mar 11. Paid $1,500 for the supplies purchased on Jan 3.

Mar 15. Paid for the annual premium on insurance policy for $850

Mar 20. Received cash on the outstanding sum of $1,100 from Company ABC for the work completed on Mar 10

Mar 25. Mr X withdrew $500 cash from the business for his personal use.

Mar 29. Paid $200 cash for utility bills.

Mar 29. Received $1,500 cash in advance being consulting services to be rendered in April.

Mar 31. Have ascertained that the cost of supplies on hand was $550

Required:

Journalize the transactions for March 2007
Post the journal entries to the three columns ledger
Prepare the trial balance as at 31 March 2007

[Refer Answer]

Basic Online Bookkeeping & Accounting Guide » Recording Process

Bookkeeping Test Question And Answer on Books of Original Entry

Accounting Test Question No 1. On The Recording Process