Tosanwumi International, credit purchase Account
Purchase Account ₦150,000, credit Tosanwumi International Account ₦150,000
Credit Account ₦150,000, Credit Tosanwumi International ₦150,000
Tosanwumi International ₦150,000, credit credit Account ₦150,000
Correct answer is B
When a purchase was made, a credit purchase invoice would have been issued by the supplier, Tosanwumi International, which would be signed by Mr. Roi as evidence of his acceptance of liability to pay for the goods.
The two accounts needed to record this transaction are the purchase Account and Tosanwumi International Account. purchase account would be debited while the Tosanwumi International Account credited.
Accounts can be classified into
Cash and credit transactions
Cash and credit accounts
Personal and private account
Personal and impersonal account
Correct answer is D
A personal account is an account for use by an individual for that person's own needs. A few examples of personal accounts include debtors, creditors, banks, outstanding/prepaid accounts, accounts of credit customers, accounts of goods suppliers, capital, drawings, etc.
impersonal accounts: Accounts which are not held in the name of the persons or are directly related to the customers or suppliers of a business. a. Real Accounts, e.g. Asset Account; and, 2. Nominal Accounts, e.g. Income and Expenditure Accounts.
The advantage of double entry is that
It is easy to prepare the final account
It increase assets
Has cash and bank column
It disburses cash
Correct answer is A
Double-entry accounting is easy to prepare and helps guarantee accurate financial records by revealing data entry errors. Double-entry accounting provides a complete record of financial transactions for a business.
Double entry system
Ledger
Cash Book
Petty Cash Book
Correct answer is B
A ledger is a separate record within the general ledger that is assigned to a specific asset, liability, equity item, revenue type, or expense type. Examples of ledger accounts are: Cash, Accounts receivable.
Dr Rent A/c; Dr Bank A/c
Dr Bank A/c; Cr Rent A/c
Dr Rent A/c; Cr Bank A/c
Dr Rent A/c; Cr Mr. Roi
Correct answer is C
In the double-entry principle, we debit income and credit expenses.
The rent account will be debited with the sum of #50,000 in regards to the landlord (because money has been paid in as rent, e.i income), while the bank column will be credited with N50,000 (money has gone out of Mr. Rio bank account via the cheque that was issued to the landlord)