HODDER EDUCATION...HODDER EDUCATION © Hachette Singapore Pte Ltd 2017 With permission from Dr Koh, NIE A. Double entry B. Bank overdraft C. Discount withdrawn D. Contra [ ] 20 2 A

HODDER EDUCATION © Hachette Singapore Pte Ltd 2017

With permission from Dr Koh, NIE

No. Difficulty Question

Level

1 1 Amounts in the control accounts are posted from ________.

A. Subsidiary ledgers

B. General ledgers

C. Trial balance

D. Financial statements [ ]

2 1 Transactions in the Cash Book can affect ___________.

A. Trade receivables control account

B. Trade payables control account

C. Both trade receivables and trade payables control accounts

D. None of the control accounts [ ]

3 1 Which of the following accounts is recorded in the Sales Ledger?

A. Trade receivable account

B. Trade payable account

C. Motor vehicle account

D. Rent expense account [ ]



4 1 Which of the following accounts is recorded in the Purchases Ledger?

A. Trade receivable account

B. Trade payable account

C. Motor vehicle account

D. Rent expense account [ ]

5 1 Control accounts are kept in the ________.

A. General ledger

B. Special ledger

C. Subsidiary ledger

D. Cash book [ ]

6 1 What effect does a credit sales transaction have on the trade receivables control account?

A. Debit

B. Credit [ ]

7 1 What effect does a sales return transaction have on the trade receivables control account?

A. Debit

B. Credit [ ]



8 1 What effect does a reversal of discount allowed transaction have on the trade receivables control account?

A. Debit

B. Credit [ ]

9 1 What effect does a write-off of trade receivables transaction have on the trade receivables control account?

A. Debit

B. Credit [ ]

10 1 What effect does a credit purchases transaction have on the trade payables control account?

A. Debit

B. Credit [ ]

11 1 What effect does a purchase returns transaction have on the trade payables control account?

A. Debit

B. Credit [ ]

12 1 What effect does a discount received transaction have on the trade payables control account?

A. Debit

B. Credit [ ]

13 1 What effect does a contra-entry against trade receivables control account transaction have on the trade payables control account?



A. Debit

B. Credit [ ]

14 2 Total from the sales returns journal will result in a _________.

A. Debit in the trade receivables control account

B. Credit in the trade receivables control account

C. Debit in the trade payables control account

D. Credit in the trade payables control account [ ]

15 2 Discounts received from suppliers will result in a __________.





16 2 Which of the following statements regarding control account is false?

A. The trial balance is prepared using the ending balance of the control accounts.

B. Control accounts are kept in the subsidiary ledgers.

C. The amount recorded in the control account is the sum of the amounts recorded in the individual accounts.



D. The main function of the control accounts is to be an independent check on the accuracy of the entries made in the subsidiary ledgers.

[ ]

17 2 Which of the following are examples of special journals?

(i) Purchases Journal

(ii) Sales Journal

(iii) Cash received

(iv) Allowance for impairment of trade receivables

A. (i) & (ii)

B. (ii) & (iii)

C. (i), (ii) & (iii)

D. All of the above [ ]

18 2 Total from the inventory purchases journal will result in a ______.





19 2 When two accounts for the same person are set off, the term used is ________.



A. Double entry

B. Bank overdraft

C. Discount withdrawn

D. Contra [ ]

20 2 A debit balance in the Trade Receivables Control Account represents _________.

A. Total trade receivables

B. Total trade payables

C. Total bank overdraft

D. Total returns [ ]

21 2 A credit balance in the Trade Payables Control Account represents _________.

A. Total trade receivables

B. Total trade payables

C. Total bank overdraft

D. Total returns [ ]

22 3 Which of the following will be recorded in the trade payables control account?

(i) Sales revenue

(ii) Purchase of inventory



(iii) Cash at bank

(iv) Interest income

A. (i) & (ii)

B. (ii) & (iii)

C. (i), (ii) & (iii)


23 3 The Purchases Ledger consists of accounts written up from the following except ________.

A. Outgoing invoices

B. Incoming invoices

C. Incoming credit notes

D. Outgoing cheques [ ]

24 3 The Sales Ledger consists of accounts written up from the following except __________.

A. Outgoing invoices

B. Incoming invoices

C. Outgoing credit notes

D. Incoming cheques [ ]

25 3 Which of the following will be recorded in the trade receivables control account?



(i) Cash at bank

(ii) Sales returns

(iii) Discount received

(iv) Purchase returns

A. (i) & (ii)

B. (ii) & (iii)

C. (i), (ii) & (iii)


26 3 Which of the following will be recorded in the credit column in the trade receivables control account?

(i) Sales revenue

(ii) Discount allowed

(iii) Allowance for impairment of trade receivables

(iv) Cash received

A. (i) & (ii)

B. (i) & (iii)

C. (ii) & (iv)

D. (ii), (iii) & (iv) [ ]



27 3 Big Pte Ltd had a balance of $2,000 in the trade payables control account as at 1 May 20X5. It bought $3,000 worth of goods from Small Pte

Ltd and paid off $2,000 by the end of the month. What is the balance in the trade payables control account as at 31 May 20X5?

A. $3,000

B. $2,000

C. $1,000

D. $5,000 [ ]

28 3 Small Pte Ltd had a balance of $6,000 in the trade receivables control account as at 1 Mar 20X3. It sold $4,000 of goods and charged one of

the customers an interest of $100 for payment overdue during the month. What is the balance in the trade receivables control account as

at 31 Mar 20X3?

A. $10,100

B. $11,100

C. $10,000

D. $4,100 [ ]

29 4 XYZ Pte Ltd recorded the following amounts in its subsidiary ledgers:

- Trade receivables: Abby $3,000; Bobby $5,000; Catty $4,000

- Trade payables: Bobby $6,000; Denny $5,000

What are the net balances of the trade receivables and payables control accounts?



A. "Trade receivables control a/c: $12,000 Trade payables control a/c: $11,000"

B. "Trade receivables control a/c: $1,000 Trade payables control a/c: $0"

C. "Trade receivables control a/c: $7,000 Trade payables control a/c: $5,000"

D. "Trade receivables control a/c: $7,000 Trade payables control a/c: $6,000" [ ]

30 4 Best bookstore had a balance of $3,000 in the trade receivables control account as at 1 January 20X1. The company had the following

transactions on January 20X1, what is the ending balance in the trade receivables control account as at 31 January 20X1?

4 Jan - Purchased a batch of books for $2,000

8 Jan - Sold the batch of books for $3,000 on credit

15 Jan - Made an allowance for impairment of trade receivables of $500

22 Jan - Received a payment of $800 from a debtor

A. $3,500

B. $4,700

C. $6,700

D. $6,000 [ ]

31 4 June Jewellery had a balance of $5,000 in the trade payables control account as at 1 June 20X1. Given the following transactions in June

20X1, what is the ending balance in the trade payables control account as at 30 June 20X1?

5 June - Paid a supplier $1,000



10 June - Purchased a batch of necklaces for $5,000 on credit from Nicky Necklaces

19 June - Found some defects on one of the necklaces purchased on 10 June, Nicky Necklaces then decided to give a discount of 10% on the

amount payable

22 June - Paid a first payment of $2,000 to Nicky Necklances

A. $6,500

B. $5,000

C. $4,000

D. $7,000 [ ]

32 4 XYZ Pte Ltd recorded the following amounts in its subsidiary ledgers as at 1 Jan 20X1:

Trade receivables: Abby $4,000; Bobby $1,000; Catty $8,000

Trade payables: Bobby $8,000; Catty $3,000

XYZ made the following transactions in Jan 20X1. What is the balance in the trade payable control account as at 31 Jan 20X1?

- Paid Bobby $4,000

- Received a cheque of $2,000 from Abby which was returned from the bank

A. $3,000

B. $7,000

C. $6,000



D. $11,000 [ ]

33 4 XYZ Pte Ltd recorded the following amounts in its subsidiary ledgers as at 1 Jan 20X1:

Trade receivables: Abby $4,000; Catty $1,000

Trade payables: Bobby $4,000; Catty $5,000

XYZ made the following transactions in Jan 20X1. What is the balance in the trade receivable control account as at 31 Jan 20X1?

- Paid Catty $4,000

- Received a cheque of $1,000 from Abby which was bounced back from the bank

A. $4,000

B. $3,000

C. $5,000

D. $0 [ ]

Documents

HODDER EDUCATION...HODDER EDUCATION © Hachette Singapore Pte Ltd 2017 With permission from Dr Koh, NIE A. Double entry B. Bank overdraft C. Discount withdrawn D. Contra [ ] 20 2 A