Name:

_____________
TERM 1
ACCOUNTING
IGCSE
ACTIVITY
BOOKLET
PURPOSE OF ACCOUNING- PG 6 KNOWLEDGE CHECK
1. Which of the following is not a likely business objective?
A. Profit maximization C. Survival
B. Growth D. Income statement

2. A business sells 1100 units at $8 each. Total expenses are $5400. Calculate the profit for this
period.
A. $8800 C. $3400 (1100x8= 8800 – 5400)
B. $5400 D. $14200

3. Which of the following is not a reason for buying shares in a limited company?
A. To receive dividends
B. To profit from rising share prices
C. To control the business
D. To obtain credit

4. State three reasons why it is important to measure profit (or loss) for an accounting period.

5. Explain the difference between book-keeping and accounting.

6. Explain how accounting can provide information for:

A. A monitoring progress
B. Making decisions

ANSWERS
1. _______________ 2. ________________ 3. _______________

4. _______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
5. _______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
6. (A) ____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
(B) ______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

PURPOSE OF ACCOUNTING- PG 1 STUDENT WORKBOOK

1. Which of the following are common business objectives?
A. Profit maximization D. Survival F. Statement of financial
B. Income statement E. Market share position
C. Book-keeping

2. The total income for a business for 2018 is $78000. For the same period, total expenses are
$32000. Calculate the profit for 2018.

3. State two reasons why the profit may not be viewed as important by a business owner.

4. Which of the following is not a reason why the measurement of profit is important for a business?
A. To calculate tax payable C. To obtain credit from suppliers
B. To encourage investors into the D. To help decide whether to allow credit to
business customers

5. Which of the following is not normally considered to be part of management accounting?

A. Setting targets C. Analysing results
B. Producing budgets D. Entering transactions in account

ANSWERS
1. __________________
2. _______________________
3. _______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
4. ___________________
5. ___________________

ACCOUNTING EQUATION- PG 15 KNOWLEDGE CHECK

1. Which of the following is an asset?
A. A bank loan C. Mortgage
B. Amount owing to suppliers D. Inventory bought on credit

2. Use the following data to calculate the value of owners’ equity:

Machinery $54000, Equipment $8200, Bank balance $1150, Bank loan $15900
A. $47450 (63350-15900) C. $62450
B. $78450 D. $63350
3. Classify the following into assets or liabilities:
A. Money owed by customers.
B. Amounts owing to the bank.
C. Machinery used by the business.
D. Goods bought with the intention of being sold for a profit.
E. Mortgage used by the business to buy premises.

4. Use the following information to prepare a statement of financial position for 31st October.
$
Property 230000
Vehicles 38750
Inventory 11900
Bank 4535
Trade Payables 8927
Bank loan 85000
Owners’ equity ???

ANSWERS
1. __________________ 2. ___________________
3. ASSETS: ________________________
LIABILITIES: _____________________
4.

Statement of financial position as at 31 October

Assets $ Owners’ equity and Liabilities $

ACCOUNTING EQUATION- PG 2 STUDENT WORKBOOK

1. Total assets are $89000 and total liabilities are $23500. Calculate the value of Owners’ Equity?

2. Liabilities total $11200 and the owners’ equity is valued at $47500. Calculate the value of the
business assets.

3. Use the following information to calculate the value of the owners’ equity.
Equipment $560 Bank $1120 Bank loan $260
4. A business has the following assets and liabilities at the end of the year end. Calculate the value of
the owners’ equity for the business.
$
Bank 1890
Machinery 15700
Vehicle 4310
Inventory 600
Loan 5000
Amounts owing to credit suppliers 1110

5. Use the following information to prepare a statement of financial position.

$
Business van 11900
Owners’ Equity 12000
Equipment 4155
Trade receivables 990
Trade payables 2310
Bank 1109
Inventory 656
Bank loan 4500

6. Explain how an owner withdrawing cash from a business for personal use would affect the
statement of financial position.

7. Raj has provided the following statement of financial position.

Prepare an updated statement of financial position after the following transactions.
LIABILITIES AND OWNERS
ASSETS $ $
EQUITY
Machinery 24000 Owners’ equity 25000
Car 7500 Amount owing to friend 10000
Inventory 2140 Trade payables 920
Trade receivables 1390
Bank 890
35920 35920
 Transaction 1: A bank loan of $10000 s obtained to buy machinery for $8000.
 Transaction 2: The amount owing to the friend is settled in return for the rest of the amount
borrowed from the bank, the car, and the remaining balance is settled by giving the friend
inventory of the value needed to clear the debt to the friend.

8. Which of the following is not a liability?

A. Trade payables
B. Trade receivables
C. Bank loan
D. Mortgage

9. Use the following information to calculate the value of the owners’ equity: Equipment $454,
Inventory $131, Cash $654, Trade payables $646.
A. $1239
B. $646
C. $876
D. 593
10. Which of the following is correct?
ASSETS LIABILITIES OWNERS
EQUITY
$ $ $
A 3123 1416 1708
B 4341 647 3696
C 5435 2311 3124
D 6472 4898 1572

11. Which of the following is incorrect?

ASSETS
12. LIABILITIES OWNERS
EQUITY
$ $ $
A 989 120 769
B 432 111 321
C 878 245 633
D 1131 341 790

ANSWERS
1. ___________________________________ 2. __________________________________
3. ___________________________________
4. _______________________________________________________________________________
5.

Statement of financial position

$ $

6. _______________________________________________________________________________
_______________________________________________________________________________
7.

LIABILITIES AND OWNERS

ASSETS $ $
EQUITY

8. ________________ 9. ________________ 10. _______________ 11. ___________

ACCOUNTING EQUATION- PG 16 CHAPTER REVIEW

1. Which of the following is NOT a likely reason why profit is important to the owner of a business?
A. To inform competitors
B. To keep shareholders happy
C. To calculate the right amount of tax to be paid
D. So that borrowing is possible

2. A business sells 600 units at $4 each. Total expenses are $2200. Calculate the profit earned.
A. $2400
B. $200 (600x4$= $2400 - $2200= $200)
C. $800
D. $2200

3. Which of the following is the best description of the term profit maximisation?
A. Earning more profit than all other businesses
B. Earning more profit than in all previous years
C. Earning as much profit as is possible
D. Maximising spending by the business

4. Which of the following is NOT a liability?

A. Trade credit given by suppliers
B. Trade credit given by customers
C. Bank loan
D. Mortgage on property
5. Which of the following is correct?

ASSETS LIABILITIES OWNERS EQUITY

A 80910 24151 57759
B 4414 1312 4102
C 27909 12311 15598
D 41411 31747 8664

6. Which of the following is NOT true?

A. Assets= Liabilities + Owners’ Equity
B. Owners’ Equity= Assets – Liabilities
C. Liabilities – Owners’ Equity = Assets
D. Assets – Owners’ Equity = Liabilities

7. Which of the following is NOT correct?

8. ASSETS LIABILITIES OWNERS EQUITY

A 12414 6464 5950
B 3141 990 2151
C 8010 6352 1658
D 19813 11311 8062

ANSWERS
1. _______________ 2. _______________ 3. _______________ 4. ____________
5. _______________ 6. _______________ 7. _______________

DOUBLE-ENTRY BOOK KEEPING- PG 33 KNOWLEDGE CHECK

1. A business sells goods on credit that are later returned by the customer because they are
unsuitable. Which of the following is the correct double entry to record the goods being accepted
back to the business.
Debit Credit
A. Sales
Trade receivable
B. Sales return Trade payable

C. Sales return Trade receivable

Trade payable
D. Sales
2. Adele purchases goods on credit from Wei. Which of the following is the correct record of this
transaction in the double entry accounts of Wei.
Debit Credit
A. Adele Sales
Purchases
B. Wei
Wei
C. Purchases
Adele
D. Sales
3. A computer is bought on credit from poppy to be used in the business office. The computer is
returned as it doesn’t work. Which of the following is the correct double entry needed to record the
transaction in the businesses accounts.
Debit Credit
A. Poppy Purchase returns
Computer
B. Poppy
Poppy
C. Sales return
Poppy
D. Computer

4. For each transaction state which account should be debited and which should be credited.
A. Computer bought with payment made from the bank account.
B. Delivery van bough on credit from Perg.
C. Owner pays own money into business bank account.
D. Fixtures and fittings sold on credit to Li.
E. Payment received from Li into bank.
F. Equipment sold for cash.

5. For each transaction state which account should be debited and which should be credited.
A. Inventory purchased and paid for immediately by cheque.
B. Goods returned to original supplier, Hania, due to them being faulty.
C. Sales of goods on credit to Rashid.
D. Payment to Sunita, a supplier, made from the bank.
E. Goods previously sold to Martin are returned.

6. For each transaction state which account should be debited and which should be credited.
A. Rent paid from the bank.
B. Wages paid in cash.
C. Commission received and paid into business account.
D. The owner of a business takes computer equipment from the business for personal use.
E. Inventory purchased on credit from Somchi.

7. Prepare the double entry accounts for the month of August for the following:
1 Aug Keletso starts a business with $400 of cash and $2000 placed into the business account.
2 Aug Computer equipment is bought for business use for $900 with payment made from the
bank.
 4 Aug Computer equipment worth $200 no longer needed for business use is sold on credit to
123 computers.
7 Aug A loan of $1000 is taken out by the business from Western Bank. The money is placed
straight into the bank account of the business.

8. Prepare the double entry accounts for the month of May for the following:
1 May Grace starts a business depositing $3000 into the business bank account.
2 May $500 is transferred from the bank into the cash account.
8 May Equipment is bought on credit from ABC supplies for $900.
12 May Additional equipment is bought on credit from ABC supplies for $5.
16 May ABC supplies is paid the full amount owing for equipment bought, $1400, by bank
transfer.
20 May A car is bought for $1000. Payment is made from the bank account.

ANSWERS
1. ____________________ 2. _______________________ 3. ______________________
4.

DEBIT CREDIT

F
5.

DEBIT CREDIT

E
6.

DEBIT CREDIT

7.

BANK

$ $

CASH

$ $

COMPUTER EQUIPMENT

$ $

OWNERS EQUITY
$ $

123 COMPUTERS

$ $
 WESTERN BANK

$ $

8.

OWNERS EQUITY

$ $

EQUIPMENT
$ $

BANK
$ $

INSURANCE
$ $

PURCHASE RETURNS
$ $
PURCHASES
$ $

SANTIAGO
$ $

JANINE
$ $

VEHICLE
$ $

OLIVER
$ $

SALES
$ $
 MARIA
$ $

DOUBLE-ENTRY BOOK KEEPING- PG 6 STUDENT WORKBOOK

1. State whether the following are true or false.
A. Increasing an assets balance requires a debit entry in the asset account.
B. Reducing the size of an amount owing requires a credit entry in the liability account.
C. Borrowing money affects both assets and liabilities.
D. Paying back a loan reduces assets and liabilities.
E. Selling an asset for cash will leave the total value of assets unchanged.

2. Prepare the double entry accounts to record the transactions for August 2018 for Ibrahims business.
1 August Ibrahim places $500 of his own money into the business cash till.
4 August Ibrahim places $300 of his own money into the business bank account.
7 August Machinery is bought for $550 with payment made by cheque.
15 August Equipment is bought on credit for $750 from Bracha.
19 August A motor car is bought on credit for $2400 from Chidike.
22 August A cheque is sent to Bracha for $750.

3. Prepare the double entry accounts to record the transactions for S Sials first month of business
operations.
6 October $19000 of owners money is place into the business bank account.
10 October Premises are bought for $15000, payment is made by cheque.
15 October $1000 from bank is paid into cash till.
18 October Fixtures and fittings are purchased for $3500 on credit from Citra.
21 October Office equipment is bought for $500 cash.
24 October Fixtures and fittings worth $750 are sold for $750 on credit to Dalitso.

4. Prepare the double entry accounts to record the following transactions.

1 July Goods bought on credit for $77 from Youssef.
3 July Goods bought on credit for $54 from Mila.
9 July We return goods to Youssef worth $14.
14 July We pay Mila by cheque for the full $54.
15 July We settle our account with Youssef by a cash payment of $20.

5. Prepare the double entry accounts of Surinder and balance them at 30 September 2018.
1 September Owner places $900 of her own money into the business bank account.
3 September Goods purchased on credit from Oscar for $102.
6 September Goods purchased on credit from Wassane for $75.
10 September Sales made on credit to Gabriela for $99.
13 September Owner returns goods worth $34 to Wassane.
19 September Commission received $65 cash.
22 September Sales made on credit to Khatia for $318.
25 September Khatia returns $58 of the goods that he purchased.
 26 September Owner withdrew $100 from the bank for own private use.
27 September Cash received totaling $50 from Gabriela.
29 September Wages paid by cheque $240.

6. Prepare the ledger account of Anita and balance it at the months end.
1 December Sold goods on credit to Anita worth $800.
4 December Goods returned by Anita worth $75.
10 December Sale on credit to Anita worth $1200.
18 December Cheque received from Anita for $700.
29 December We accept a computer from Anita for business use- at an agreed valuation of
$350.

7. If a business sells goods for more than they originally cost, surely the accounting equation will no
longer hold. How do you think the issue is resolved?

8. When a set of accounts are balanced for a period of time, the total of all debit balances is always
equal to the total of all the credit balances on the accounts. Explain why this is the case?

ANSWERS

1. A) _________________ B) _________________ C) _________________

D) _________________ E) _________________
2.

OWNERS EQUITY

$ $

CASH

$ $

BANK

$ $
 MACHINERY

$ $

EQUIPMENT

$ $

BRACHA

$ $

MOTOR CAR

$ $

CHIDIKE

$ $

3.

OWNERS EQUITY

$ $

BANK

$ $

PREMISES

$ $
 CASH

$ $

FIXTURE AND FITTINGS

$ $

OFFICE EQUIPMENT

$ $

DALITSO

$ $

4.

PURCHASES

$ $

PURCHASE RETURNS

$ $

MILA

$ $

BANK

$ $
 CASH

$ $

YOUSSEF

$ $

5.

OWNERS EQUITY

$ $

BANK

$ $

PURCHASES

$ $

OSCAR

$ $
 WASSANE

$ $

SALES

$ $

PURCHASE RETURN

$ $

COMMISSION RECEIVED

$ $

CASH

$ $
 GABRIELA

$ $

KHATIA

$ $

SALES RETURN

$ $

WAGES

$ $

DRAWINGS

$ $
6.

ANIT

$ $

7. _______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
8. _______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

BUSINESS DOCUMENTS- PG 9 STUDENT WORKBOOK

1. Match each of the following business documents to the account that is affected by the document.
A. Sales invoice 1. Cash
B. Cheque counterfoil 2. Sales return
C. Purchase invoice 3. Sales
D. Credit note 4. Purchases
E. Receipt 5. Bank

2. Complete this invoice by filling in the total column.

3. Fill out the following cheque based on payment of $650 to Sampson on 14 September 2018. The
cheque will be paid out of your bank account.

4. For which of the following accounts does a paying-in slip provide information for making debit
entries?
A. Credit suppliers B. Credit customers
C. Cash D. Bank

5. A cash sale for immediate payment may be recorded from which of the following business
documents?
A. Purchase invoice C. Debit note
B. Receipt D. Credit note

ANSWERS
1. A) ________________ B) ________________ C) ________________
D) ________________
2.

Workings: _______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
3.

4. _____________________
5. _____________________

CHAPTER 1 REVIEW
1. Which of the following is a possible objective of a business?
A. Book-keeping C. Payment of tax
B. Financial statements D. Breaking even

2. A business sells 750 units of output at $11.40 each and total expenses are $5488. Calculate the
profit of the business.
A. $8550 C. $3062
B. $5488 D. $11400

3. Which of the following is not a likely use of profits in a business?

A. Payment of dividends C. Expansion of business
B. Withdrawals from owner D. Paying customers

4. A new small business is operating in a period of economic uncertainty. What is its most likely
objective?
A. Survival C. Market share growth
B. Profit maximization D. Market dominance

5. Which of the following is not an asset?

A. Buildings C. Mortgage on property
B. Amount owing to customers D. Inventory
6. Which of the following is an asset?
A. Trade receivables C. Money owing to suppliers
B. Owners’ equity D. Bank loan
 7. Which of the following is not correct?
A L OE
A 6541 4311 2230
B 8745 3132 5613
C 6551 1312 4239
D 8966 6464 2502

8. Which of the following is correct?

A L OE
A 16700 8755 6945
B 24510 8900 15610
C 31340 13755 17885
D 54535 21011 33424

9. Use the following information to calculate the value of the owners’ equity.
$
Buildings 165000
Machinery 18900
Bank loan 50000
Inventory 5542
Trade payables 8756
Trade receivables 9991
Bank balance 1010
Equipment 5000
Van 7600

10. Use the following information for Bonika to prepare a statement of financial position as at 31
December 2018. The owners’ equity is missing and is assumed to be the amount needed to
balance the statement.
$
Premises 250000
Equipment 34000
Mortgage on premises 175000
Inventory 550
Trade payables 141
Trade receivables 544
Bank balance 2400
Motor vehicle 11000
Cash in till 43

11. Keletso has provided the following statement of financial position. Prepare an updated statement
after these additional transactions.
 Transaction 1: Inventory valued at $1290 purchased on credit.
 Transaction 2: Owner withdraws $50 from the bank account for personal use.
 Statement of financial position
$ $
Premises 120000 Owners’ equity 81430
Equipment 12500 Bank loan 60000
Inventory 5690 Trade payable 4430
Trade receivables 6780
Bank balance 890
145860 145860

ANSWERS
1. ________________ 2. _________________ 3. ________________ 4. _______________
5. ________________ 6. _________________ 7. ________________ 8. _______________
9. _______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

10.

Bonika
Statement of financial position as at 31 December 2018

$ $
11.

Statement of financial position

$ $

BOOK OF PRIME ENTRY- PG 64 KNOWLEDGE CHECK

1. The sales journal contains:
A. Sales made but not paid for at the time of sale
B. Sales made for immediate cash settlement
C. Sales of assets to be used within the business
D. Returns of goods sold on credit

2. Where is the purchase returns account located?

A. Purchase journal
B. General journal
C. Purchase ledger
D. Purchase return journal

3. Goods are purchased from Adrianna on 13 April 2018 for $800. A cash discount of 2.5% is offered if
the amount owing is settled within 14 days. Payment is made on 20 April 2018. Which is the correct
double entry to record the discount?
Debit Credit
Discounts received $40
A. Adrianna $40
Adrianna $20
B. Discounts allowed $20
Adrianna $40
C. Discounts received $40
Discount received $20
D. Adrianna $20

4. For each transaction, state in which BOPE the transaction would be recorded.
A. Sales made on credit
B. Goods previously sold by the business sent back to the business
C. A computer used in business taken out of the business for personal use
D. Cheque paid to settle an account relating to a previous purchase of goods
E. Machinery sold with payment received by cheque
F. Office furniture bought on credit specifically for resale
5. The following is a summary of the petty cash transactions for May 2018.
1 May Received from petty cash cashier $100 as float
2 May Rail fares $17
4 May Petrol $8
8 May Stationery purchases $4
10 May Cleaning $11
18 May Petrol $16
21 May Cleaning $15
22 May Bus fares $4
25 May Cleaning $2
a) Prepare a petty cash book with columns for expenses on cleaning, travel expenses, and
stationery.
b) Enter the month’s transactions.
c) Enter the receipt of the amount necessary to restore the imprest and carry down the balance for
the commencement of the following month.

6. Prepare the journal entries necessary to record the following transactions for July 2018. Narratives
not required.
1 July Equipment bought on credit from Tau for $900
8 July The business owes $280 to Manuel but the debt is transferred to Sahar
13 July Equipment worth $490 taken out of the business for personal use.
19 July Car bought on credit from Quality Cars Ltd for $2900
25 July Computer accepted in return for outstanding debt of $325 owed to the business by Wei

7. From the following data, construct the cash book for the month of July 2018 and balance the cash
book for the end of the month.
1 July Balance at bank $860 overdrawn and $42 cash in business cash register
4 July Sale of machinery for $320 with payment received by cheque
7 July Cash of $250 withdrawn from bank and placed into cash register
11 July Purchase of goods for resale $100 payment by cheque
14 July Payment received by cheque from M Yang- a credit customer for $84
18 July Wages paid by cheque $530
22 July Payment of advertising $51 paid with cash
26 July Sale of goods for cash $230
On 29 July, all cash held in cash register, except $40, was transferred into the bank account.
ANSWERS
1. _______ 2. ________ 3. ________
4. A) _____________________________________
B) _____________________________________
C) _____________________________________
D) _____________________________________
E) _____________________________________
F) _____________________________________
5.

PETTY CASH BOOK

Total
Receipts Date Details Voucher Total Cleaning Stationery
expenses

$ $ $ $ $

6.

Dr Cr
$ $
7.

CASH BOOK

2018 CASH BANK 2018 CASH BANK

$ $ $ $

BOOK OF PRIME ENTRY- PG 11 STUDENT WORKBOOK

1. Decide whether the following statements are true or false.
A. All cash and bank transactions appear in the cash book.
B. All sales of inventory appear in the sales journal.
C. Anything sold on credit appears in the general journal.
D. Good returned by customers appear in the sales returns journal.
E. Introduction of owners’ equity will always appear in general journal.

2. For each of the following, state in which journal you would record the transaction.
A. Sales of goods on credit.
B. Owners’ van bought into business for business use.
C. Car purchased on credit for business use.
D. Inventory purchased on credit.
E. Inventory sent back to original supplier due to its unsuitability.

3. Use the following information to prepare a cash book for the month of March 2018.
Balances on the 1 March: cash $60 (Dr); bank $320 (Dr)
 2 March Received cheque from Shanaya for $560
6 March Sold goods for cash $50
9 March Paid Sorin by cheque $110
15 March Paid wages by cheque $250
18 March Received $88 commission in cash
21 March Purchased goods for $440, paid immediately by cheque
25 March Paid telephone expenses by cash $32

4. The following is a summary of the petty cash transactions for June 2018.
1 June Received from petty cashier as petty cash float $100
2 June Rail fares $21
7 June Bus fares $9
10 June Paper for printer $6
15 June Bus fares $5
22 June Pens and pencils $12
29 June Petrol $27
a) Prepare a petty cash book with columns for expenditure on travel and office equipment to
record the month’s transactions.
b) Enter the necessary amount to restore the imprest and carry down the balance for the following
month.

5. Prepare a cash book for November 2018 from the following information.
1 Nov Balances at the start of the month: cash in hand $29 and bank overdraft $210
5 Nov The following customers paid their accounts by cheque, in each case deducting 2.5%
cash discount (the amounts are (pre-discounts)
Isidore $560 Irina $320
9 Nov Paid rent $285 by cheque
16 Nov Withdrew $70 from bank for cash till
20 Nov The following invoices are settled by cheque with the supplies each allowing a 5%
discount (invoice total is pre-discount)
Rajinder $400 Nelu $640
21 Nov Cash purchases $44
24 Nov Cash sales $111
28 Nov Cash of $50 deposited into bank

6. Prepare the journal entries and double entry accounts to record the following transactions.
1 June Goods sold on credit to Farzana for $230
9 June Goods sold on credit Julien for $155
13 June Goods purchased on credit from Khamisi for $47
20 June Goods sold on credit to Farzana for $101
24 June Goods purchased on credit from Vendula for $95

7. Prepare the journal entries to record the following transactions.

1 Oct Sold machinery on credit to Amerdeep for $560
5 Oct Owners van valued at $5200 is bought into the business
13 Oct Debt of $80 owing to the business is transferred from Horaci to Gerda
19 Oct Business transfers a computer to Clemente in return for cancellation of $400 debt owed
to him by the business
23 Oct Equipment bought on credit from Eduard for $290
 8. Prepare the journal entries and double entry accounts to record the following transactions. Transfer
the monthly totals to the accounts in the nominal ledger.
1 July Goods purchased on credit from Stefano for $86
3 July Goods purchased on credit from Yannik for $63
5 July Credit sales for $314 to Natalia
7 July Goods worth $31 are returned to Stefano
10 July Natalia returns goods worth $31
15 July Credit purchases from Proclus for $92
19 July Sales made on credit to Dian for $182
20 July Goods returned to Proclus valued at $19
21 July Goods sold to Dian for $182
28 July Dian returns goods worth $41

9. Where is the purchases account located?

A. Purchases journal C. General journal
B. Purchases ledger D. Nominal ledger

10. Which of the following transactions is recorded in the sales return journal?
A. Goods sent back to the business by customers
B. Sales of inventory
C. Equipment used in the business that must be returned
D. Inventory returned to the credit supplier

11. Credit purchases of tables for resale by a furniture retailer are recorded in which book of prime
entry?
A. Cash book C. Purchases journal
B. General journal D. Petty cash book

12. Equipment used in a business is returned to the original supplier. In which book of prime entry is
this recorded?
A. General journal C. Purchases journal
B. Cash book D. Purchases return journal

ANSWERS
1. A) ___________ B) ____________ C) _____________
D) ___________ E) ____________
2. A) ___________________ B) ___________________ C) _________________
D) ___________________ E) ___________________
3.

CASH BOOK

2010 CASH BANK 2010 CASH BANK

$ $ $ $
4.

PETTY CASH BOOK

Travel Office
Receipts Date Details Total
expenses expenses

$ $ $ $

5.

CASH BOOK

DISCOUNT CASH BANK DISCOUNT CASH BANK

2018 $ $ $ 2018 $ $ $
6.

SALES JOURNAL

PURCHASES JOURNAL

SALES LEDGER
FARZANA
$
$
 PURCHASES LEDGER
KHAMISI
$
$

JULIEN
$
$

VENDULA
$
$

NOMINAL LEDGER
SALES
$
$

PURCHASES

$ $

7.

GENERAL JOURNAL

DR CR

$ $
8.

SALES JOURNAL PURCHASES JOURNAL

$ $

SALES RETURN JOURNAL PURCHASES RETURN JOURNAL

$ $

NOMINAL LEDGER
SALES
$
$
 PURCHASES

$ $

SALES RETURN
$
$

PURCHASES RETURN

$ $

SALES LEDGER
NATILIA

$ $

DIAN

$ $

PURCHASES LEDGER
STEFANO

$ $
 YANNIK

$ $

PROCLUS

$ $

9. ___________ 10. ___________ 11. ___________ 12. ___________

WELL DONE!