CASH AND BANK CHAPTER T

SELF TEST QUESTIONS

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  1. Where do receipts from credit customers have to be recorded?1.2
  2. What is a remittance list?1.4

EXAM-STYLE QUESTIONS

1 Which of the following are the accounting entries required to record a cash purchase of $600 from Georgio Caterers?

ADr Purchases $600; Cr Georgio Caterers $600
BDr Georgio Caterers $600; Cr Purchases $600
CDr Purchases $600; Cr Cash $600
DDr Cash $600; Cr Purchases $600

2 The total of the discounts in the cash payments record for April 20X7 is $80. One part of the double-entry required to reflect this will be recorded in the trade payables account.

What is the other accounting entry required to properly record this transaction in the general ledger?

ADr Revenue
BCr Revenue
CDr Discount received
DCr Discount received

3 Sales tax is recorded in the cash records:

AWhen a sale is made on credit
BWhen a cheque is received from a credit customer
CWhen a cash sale takes place
DWhen discounts are received

For suggested answers, see the 'Answers' section at the end of the book.