Multiple Choice Questions (8-10)
Question 8
The following post-closing trial balance at 31 January 2011 was prepared by an inexpe- rienced bookkeeper of Help-my-sukkel Traders:
Trial balance at 31 January 2011
| R | R | |
| Delivery vehicle at cost Accumulated depreciation: Delivery vehicle Debtors Creditors Fixed deposit at UK Bank Accrued income Prepaid expenses Inventory – merchandise Capital – 1 February 2010 Net income for the year | 80 000 20 000 28 000 3 000 50 000 | 40 000 10 000 5 000 83 000 150 000 |
| 181000 | 181000 |
The trial balance balances, but with the wrong totals.
On checking the items, you found that some of the amounts, although correct, were listed on the wrong side of the trial balance. In addition the bookkeeper also omitted the bank balance.
101_2011_3_e1.pdf
Which one of the following answers represents the bank balance?
- R67 000 favourable
- R81 000 favourable
- R51 000 favourable
- R61 000 favourable
- None of the above
Question 9
Which one of the following alternatives represents the side and general ledger account to which the total of the discount column in the cash payments journal should be posted monthly?
The “payments to creditors” column includes the amount of the actual payment as well as the discount.
- Debit side of the settlement discount received account.
- Debit side of the creditors control account.
- Credit side of the settlement discount allowed account.
- Credit side of the settlement discount received account.
- None of the above
Question 10
The following account appears in the general ledger of Stardust Limited.
Irrecoverable credit losses
| 30/1/2011 Sales 300 | |
Which one of the following books of first entry (subsidiary book) was used to make the adjustment entry on 30 January 2011?
- Sales journal
- General journal
- Cash receipts journal
- Bills receivable journal
- None of the above
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