Question

A ) You have entered the following opening balances for the start of the financial year.

General Ledger:

Accounts Receivable $120,000

Accounts Payable $115,000

Subsidiary Ledger:

Customer Balances			Suppliers Balances
Ames Industries	30,000		Cantor & Son	28,000
Ballas Pty Ltd	40,000		Hays Inc	22,000
Gore Inc	25,000		Lawes Pty Ltd	50,000
Majam Pty Ltd	?		Kahn Industries	?

Unfortunately you cannot read the amount for the last name in each list. You are, however, able to calculate them as:

Select one:

a. Majam Pty Ltd 15,000 and Kahn Industries 25,000

b. Majam Pty Ltd 25,000 and Kahn Industries 25,000

c. Majam Pty Ltd 25,000 and Kahn Industries 15,000

d. Majam Pty Ltd 15,000 and Kahn Industries 15,000

B)

Select the most appropriate definition of an account:

Select one:

a. Detailed record of changes that have occurred

b. Basic summary device

c. Unsold goods on hand

d. Both a and b

D)

Select the most appropriate order of a transaction:

1 Post to subsidiary ledger

2 Post to general ledger

3 Transaction recorded in journal

4 Source documents gathered

Select one:

a. 4, 1, 2, 3

b. 4, 3, 1, 2

c. 4, 2, 3, 1

d. 4, 3, 2, 1

Answer 1

Answer A

Majam Pty Ltd balance = Total accounts receivables - Total customer balances

Majam Pty Ltd balance = $120000 - $95000 = $25000

Kahn Industries balance = Total Accounts Payable - Total supplier balances

Kahn Industries balance = $115000 - $100000 = $15000

The answer is Option c.

Answer B

The answer is Option d.

The most appropriate definition of an account is Detailed record of changes that have occurred and Basic summary device.

Answer D

The answer is Option d.

The most appropriate order of a transaction: 4) Source documents gathered 3)Transaction recorded in journal, 2)Post to general ledger and 1) Post to subsidiary ledger