Revision

Question 1

What accounts are debited after purchases?

Answer 1

Purchases account

VAT account

Question 2

What accounts are credited for discounts allowed?

Answer 2

Sales ledger control account
Sales ledger (trade receivables)

Question 3

What is the accounting equation for working out the value of capital?

Answer 3

Capital = assets - liabilities

Question 4

If purchases are returned, what accounts would be debited?

Answer 4

Purchases ledger control account 
Purchases ledger (trade payables)

Question 5

When using a cash book, when do you not put vat?

Answer 5

When entering a transaction from a trade receivable or trade payable.

Question 6

What does R.T.F.Q stand for?

Answer 6

Read the fucking question.

Question 7

What accounts are debited when recording discounts allowed?

Answer 7

Cash book account
Discounts allowed account
VAT account

Question 8

What accounts are credited when recording purchases?

Answer 8

Purchases ledger control account
Purchases ledger (trade payables)

Question 9

What is the accounting equation for working out the value of liabilities?

Answer 9

Assets - capital

Question 10

What is the accounting equation for working out the value of assets?

Answer 10

Capital + liabilities

Question 11

What accounts are credited when recording discounts received?

Answer 11

Cash book account
Discounts allowed account
VAT account

Question 12

What accounts are debited when recording discounts received?

Answer 12

Purchases ledger control account 
Purchases ledger (trade payables)

Question 13

What accounts are credited when recording purchase returns?

Answer 13

Purchases returns account

VAT account

Question 14

What accounts are debited when recording purchase returns?

Answer 14

Purchase ledger control account 
Purchases ledger (trade payables)

Question 15

When recording sales what accounts are credited?

Answer 15

Sales account

VAT account

Question 16

When recording sales what accounts are debited?

Answer 16

Sales ledger control account
Sales ledger (trade receivables)

Question 17

What accounts are debited when recording sales returns?

Answer 17

Sales returns account

VAT account

Question 18

What accounts are credited when recording sales returns?

Answer 18

Sales ledger control account
Sales ledger (trade receivables)

Question 19

Is the petty cash book a book of prime entry or a method of double entry?

Answer 19

It is both

Question 20

When is trade/bulk purchases discount applied?

Answer 20

When working out the net total.

Question 21

What is a statement of financial position?

Answer 21

One of the final accounts of a business, it shows the owners capital,

Question 22

What makes a remittance advice correctly cast?

Answer 22

If the total, VAT, and net are all correctly calculated. This includes if the product, product quantity or product cost is incorrect.

Question 23

What side of a cash book does purchases go into?

Answer 23

Credit

Question 24

What side of the cash book does sales go into?

Answer 24

Debit

Question 25

What is a cash sale?

Answer 25

A cash sale is where immediate payment is required. This includes payment methods of cheque and debit/credit cards.

Question 26

What is a credit sale?

Answer 26

A credit sale is a sale to a customer who holds an account with in the business.

Question 27

When calculating VAT, do you round down or up for to the nearest 2 decimal places?

Answer 27

You always round down.

Question 28

What side of a trial balance does discounts allowed go?

Answer 28

Debit

Question 29

What side of a trial balance does discounts received go?

Answer 29

Credit

Question 30

What side of a trial balance does purchases go?

Answer 30

Debit

Question 31

What side of a trial balance does P.L.C.A go?

Answer 31

Credit

Question 32

What side of a trial balance does S.L.C.A go?

Answer 32

Debit

Question 33

What side of a trial balance does sales go?

Answer 33

Credit

Question 34

What side of a trial balance does sales returns go?

Answer 34

Debit

Question 35

What side of a trial balance does purchases returns go?

Answer 35

Credit

Question 36

What side of a trial balance does miscellaneous expenses go?

Answer 36

Debit

Question 37

What does the term drawings mean?

Answer 37

Money withdrew from bank account (cold hard cash)

Question 38

When prompt payment discounts have been approved, how is the discount applied?

Answer 38

It is issued as a credit note to the customer.

Question 39

What is an analysed cash book?

Answer 39

A cash book which divides receipts and payments between a number of columns

Question 40

What is a two column cash book?

Answer 40

A cash book with columns for cash and bank

Question 41

Amounts recording in a cash book on either debit of credit side, when transferring to ledger accounts what side do they go on?

Answer 41

Debit goes to credit side of the accounts | Credit goes to debit side of accounts

Question 42

If the imprest of a petty cash book is £150, and that week £65 had been spent, what amount is need to restore the imprest?

Answer 42

£65

Question 43

When entering postage costs into a petty cash book, how is the VAT recorded?

Answer 43

It is not recorded as there is no VAT on postage

Question 44

When entering figures for a trial balance, if the account has had its balance closed, where do you find the amount you need to enter?

Answer 44

It is always the amount recorded as balance c/d

Question 45

What is a balance sheet?

Answer 45

It’s a statement of financial position

Question 46

How long is an accounting period?

Answer 46

1 year

Question 47

What is goodwill?

Answer 47

Good will is the over payment you pay for a business as a sign of how much you think it’s worth