QUESTION: 49

An invoice to Sammy has been entered in the sales day book as $85 instead of $58.

To correct the position, which of the following procedures should be adopted?

Debit Receivables $27, Credit Sales $27 and increase the balance owing by Sammy
Debit Receivables $27, Credit Sales $27 and decrease the balance owing by Sammy
Debit Sales $27, Credit Receivables $27 and increase the balance owing by Sammy
Debit Sales $27, Credit Receivables $27 and decrease the balance owing by Sammy

Answer(s): D

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QUESTION: 50

Under the normal convention of accounting, assets are shown in the balance sheet at:

Their current market value
Their cost value
The current cost to the firm of replacing them
Their economic value to the firm

Answer(s): B

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A trader commenced business with capital of $20,000. At the end of the financial year he had receivables of $10,000, payables of $6,000, inventory of $12,000, cash of $4,000 and non-current assets costing $16,000.

The profit/loss for the period was:

$16,000 profit
$16,000 loss
$8,000 profit
$8,000 loss

Answer(s): A

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QUESTION: 52

Which of the following transactions would be classified as a revenue transaction?

Purchase of plant and machinery
Issue of share capital
Payments made to trade payables
Purchase of inventory for resale

Answer(s): D

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QUESTION: 49

QUESTION: 50

QUESTION: 51

QUESTION: 52

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