Which of the following is used to record the disposal of a fixed asset?
Journal proper
Petty cash book
Sales day book
Purchase day book
Correct answer is A
The journal proper is in recording books with original entries used for miscellaneous credit transactions that do not fit into other recorded books. The journal is maintained like a simple journal to record opening entries, closing entries, transfer entries, adjustment entries,rectification entries, and rare transactions.
Purchase account is overcast by ₦200, while wages account is undercast by ₦200. This is
An error of omission
A compensating error
An error of commision
An error of principal
Correct answer is B
Compensating errors are errors equal in amount but opposite in sense that cancel each other. It occurs when one wrong entry neutralizes the impact of another incorrect entry.
For instance when the effect of one transaction is neutralized by another error. When the effect of errors committed cancels out such errors it is called compensating errors.
I, ii and iv
I, iii and vi
Iv, v and vi
Ii, iii and v
Correct answer is B
No explanation has been provided for this answer.
Selling of goods on credit to a customer
Withdrawal of goods by the proprietor for his personel use
Cheque paid directly into the bank account by a customer
Omission of purchases received from a supplier on credit
Correct answer is C
A cheque payment is recorded in the cash book when the cheque is despatched. The bank only records such a cheque when it is paid by the bank, which may be several days later. Items such as interest may appear on the bank statement but are not recorded in the cash book as the business is unaware that they have arisen.
The document from which entries are transferred to the purchases day book is the
Waybill
Credit note
Receipt
Invoice
Correct answer is D
No explanation has been provided for this answer.