Double Entry Book-keeping – Part B — Practice Questions

Question 1

A reduction off the list price is a:

Accepted Answer

trade discount — A reduction off list price is a trade discount.

Question 2

A discount for prompt payment is a:

Accepted Answer

cash discount — For prompt payment it is a cash discount.

Question 3

Trade discount is:

Accepted Answer

not recorded in the ledger — Trade discount is not recorded.

Question 4

Amounts owed by credit customers are recorded in the:

Accepted Answer

sales ledger — Receivables are in the sales ledger.

Question 5

Amounts owed to credit suppliers are in the:

Accepted Answer

purchases ledger — Payables are in the purchases ledger.

Question 6

Goods returned by a customer are recorded as:

Accepted Answer

sales returns — Customer returns = sales returns.