Practice Ledger Multiple Choice Questions with Answers Quiz-2

Q.1.

A ledger is called a book of.

Primary entry
Final entry
Original entry
None of the above

Q.2.

Which of the following items would not appear on the credit side of the Inventory Account

Cost of Sales
Accounts Payable
Bank
Advertising

Q.3.

Which of the following items is an incorrect title in the Accounts Receivable Ledger

Bank/Discount Expense
Sales Returns/GST Clearing
Cost of Sales
Sales/GST Clearing

Q.4.

Which of the following titles is incorrect in the Accounts Payable Ledger

Inventory/GST Clearing
Bank/Discount Revenue
Purchase Returns/GST Clearing
Bank

Q.5.

Which of the following titles would not appear in the Accounts Receivable Account

Sales Returns/GST Clearing
Bad Debts
Sales/GST Clearing
Bank

Q.6.

Which of the following titles would not appear in the Inventory Account

Drawings
Cost of Sales
Advertising
Accounts Receivable

Q.7.

Which of the following items would appear on the Debit side of the GST Clearing Account if an amount was owed to the ATO

Accounts Payable/Bank/Bank/Accounts Receivable
Accounts Payable/Bank/Accounts Receivable/Accounts Payable
Accounts Receivable/Accounts Payable/Bank/Bank/Accounts Receivable
Accounts Payable/Bank/Bank/Balance

Q.8.

Select the correct set of titles to be recorded in the credit side of the Inventory Account

Bank/Accounts Payable/Cost of Sales/Inventory Gain
Bank/Accounts Payable/Cost of Sales/Inventory Loss/Inventory Write Down
Bank/Accounts Payable/Cost of Sales/Inventory Loss/Inventory Write Down/Advertising/Drawings
Accounts Payable/Cost of Sales/Inventory Loss/Inventory Write Down/Advertising/Drawings

Q.9.

Which of the following items would NOT appear in the P/L Summary account

Capital
Net Profit
Revenues
Expenses

Q.10.

Which of the following would be the correct entries for the credit side of the inventory account

Bank/Accounts Payable/Cost of Sales/Advertising/Drawings/Inventory Loss/Inventory Write Down
Bank/Accounts Receivable/Cost of Sales/Advertising/Drawings/Inventory Loss/Inventory Write Down
Accounts Payable/Cost of Sales/Advertising/Drawings/Inventory Loss/Inventory Write Down
Accounts Payable/Cost of Sales/Accounts Receivable/Advertising/Drawings/Inventory Loss/Inventory Write Down

Q.11.

Which of the following are incorrect titles in the Disposal of Van account

Accumulated Depreciation
Trade-in
Loss on Disposal
All of the above

Q.12.

A bad debt has been written off during the period as the Accounts Receivable has been declared bankrupt. The correct entry in the Allowance for Doubtful Debts ledger would be

Credit: Bad Debts
Debit: Accounts Receivable/GST Clearing
Debit: Bad Debts
Debit: Accounts Receivable

Q.13.

What credit entry is required when the business writes off a bad debt

Bad Debts
Accounts Receivable
Doubtful Debts
Allowance for Doubtful Debts

Q.14.

When creating an allowance for doubtful debts what is the debit entry in the General Journal

Bad Debts
Accounts Receivable
Allowance for Doubtful Debts
Doubtful Debts

Q.15.

What is the debit entry required to recognize Unearned Sales Revenue as being earned

Bank
Unearned Revenue
Unearned Sales Revenue
Sales

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