Monday 2 May 2016

FA1 Practice question set 5

41 In Dalveer’s cash receipts book for the month of June the trade receivables column totalled $6,570.


What does this amount represent
A The amount invoiced to Dalveer’s customers during June 
B The amount owed by Dalveer’s customers at the end of June 
C The amount received from Dalveer’s customers during June 
D The amount of discounts given to Dalveer’s customers during June




42 Jenny has a bank balance of $550 at the start of the week. During the week the following transactions occur: Day 1 She sells goods on credit for $876 Day 2 She receives a cheque for $400 from a credit customer Day 3 She purchases office equipment with a list price of $1,000 but receives a 10% discount for paying immediately by cheque

How much does Jenny have in the bank at the end of the week? 
A $2,826 
B $400 
C $50 
D $126

43 Which of the following are books of prime entry? 
(1) Sales day book
(2) Payables ledger 
(3) Journal 
(4) Cash book 
A 1, 3 and 4 
B 1, 2 and 4 
C 2, 3 and 4
D 1, 2 and 3

44 Obama owes Bankimoon for some goods it recently bought. Obama are settling the invoice early to obtain a discount.


What is the correct double entry for this in Vauxhall’s books
A Dr Vauxhall Cr Bank Cr Discount received 
B Dr Vauxhall Dr Discount received Cr Bank 
C Dr Bank Cr Discount allowed Cr Pimlico 
D Dr Bank Dr Discount allowed Cr Pimlico

45 Fred works on a car factory assembly line and is paid a rate of $4·50/hour for a 35 hour week. All overtime is paid at time and a half. In addition a piecework rate of $25 for every car assembled each week is paid. Last week Fred worked 46 hours and completed the assembly of three cars.
How much is Fred’s gross pay for the week? A $282·00 
B $256·75 
C $306·75 
D $385·50

46 Which of the following will help to reduce overdue balances in receivables ledger accounts? 
A Improved debt collection methods 
B An increase in the bank overdraft facility 
C Credit customers paying invoices more slowly 
D An increase in credit facilities to customers

47 Carion sells the following goods for cash during January: Net Price $ Sales Tax $ 5 Jan To Maurice 386 68 19 Jan To Harris 715 125 28 Jan To Merton 430 75

What are the correct entries in Carion’s general ledger? 
A Dr Sales $1,799 Dr Sales tax $268 Cr Cash $2,067 
B Dr Cash $2,067 Cr Sales $1,799 Cr Sales tax $268 
C Dr Sales $1,531 Dr Sales tax $268 Cr Cash $1,799 
D Dr Cash $1,799 Cr Sales $1,531 Cr Sales tax $268

48 What journal entry would be posted if a sole trader starts a business by introducing his cash savings and a car into the business

A Dr Motor vehicles Dr Bank Cr Capital 

B Dr Bank Cr Motor vehicles Cr Bank 

C Dr Capital Cr Motor vehicles Cr Bank 

D Dr Motor vehicles Cr Capital Cr Bank

49 Malindra sent a payment to Nicholas along with a document detailing the items and invoices the payment related to.
What is this document known as? 

A Debit note 
B Credit note 
C Remittance advice 
D Delivery note

50 The following statements relate to the sales ledger control account: 

(1) Settlement discounts will not be recorded in the sales ledger control account 
(2) The allowance for the irrecoverable debts is recorded in the sales ledger control account

Which of the above statements are correct?

A 1 only 
B 2 only 
C Both 1 and 2 
D Neither 1 nor 2

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