Accounting Questions & Answers - Free Online Practice

2,016.

Use the following information to answer the given question

\(\begin{array}{c|c} \text{1/1/06 Debtors} & D2,600\\ \text{1/1/06 Provision for bad debts} & D60\\ \text{31/12/06 New provision provision for bad debts} & \text{5% on debtors}\end{array}\)
The provision for bad debts in the profit and loss account is

D187

D127

D67

D70

View answer & explanation

Correct answer is D

5% x 2600

\(\frac{5}{100}\) x 2600 = 130

130 - 60 = 70

2,017.

Credit sales was debited to A. Akpan instead of B. Akpan. This is an error of

Principle

Original entry

Omission

Commission

View answer & explanation

Correct answer is D

No explanation has been provided for this answer.

2,018.

The petty cash book has

A debit balance only

A credit balance only

A nill balance only

Both debit and credit balances

View answer & explanation

Correct answer is D

No explanation has been provided for this answer.

2,019.

Use the following information to answer the given question

\(\begin{array}{c|c} \text{1/1/06 Debtors} & D2,600\\ \text{1/1/06 Provision for bad debts} & D60\\ \text{31/12/06 New provision provision for bad debts} & \text{5% on debtors}\end{array}\)

What is the amount of the new provision for bad debts?

D130

D127

D124

D120

View answer & explanation

Correct answer is A

5% x 2600

\(\frac{5}{100}\) x 2600 = 130

2,020.

Which of the following is found in the general ledger?

Capital account

Sales accounts

Loan account

Drawings account

View answer & explanation

Correct answer is B

A sales account in the general ledger has a cumulative value or information regarding the actual sales ledger. By looking at this ledger, detailed information regarding the revenues can be obtained. It contains important information like date of sale, invoice number, name of the customer, amount of sale to name a few.