Journals, Ledgers, and Cash Books
We sell goods to S Knight on 19 October 20×2 for £600. The credit terms are for a 2 ½ % cash discount if payment is received within 14 days. If payment is received on 25 October then the correct double-entry to record the discount would be:
Debit and Credit = S Knight £15 and Discount received £15
Debit and Credit = S Knight £30 and Discounts received £30
Debit and Credit = Discount received £30 and S Knight £30
Debit and Credit = Discount allowed £15 and S Knight £15
Debit and Credit = Discount allowed £15 and S Knight £15
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An entry in which one account is debited and another is credited is called:A. Compound entry
B. Simple entry
C. Combined entry
D. Minor entry
___________ will be credited if goods are given as charity.
A. Cash
B. Charity
C. Purchases
D. Sales
The account of a supplier would be found in:
A. General ledger
B. Purchases day book
C. Purchases ledger
D. Sales day book
Liabilities normally show:
A. Debt balance
B. Zero balance
C. Credit balance
D. Marked balance
Machinery bought on credit from Lander Ltd had to be retuned due to its unsuitability. The correct entry to record this in the accounts would be (debit and credit) is:
A. Machinery and Lander Ltd
B. Lander Ltd and Returns outwards
C. Returns outwards and Lander Ltd
D. Lander Ltd and Machinery
The journal folio is recorded in:
A. Ledger
B. Journal
C. Trial balance
D. Balance sheet
Excess of debit balance over credit balance is called:
A. Nil balance
B. Debit balance
C. Excess balance
D. Credit balance
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