I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

Which TWO of the following are credit entries? 

1 

An increase in a liability 

2 

A decrease in a liability 

3 

An increase in income 

4 

A decrease in income 

A 

1 and 3  

B 

1 and 4  

C 2 

and 

3 

D 2 

and 

4 

 

(2 marks) 

20 

If the total debits exceed the total credits in a T-account, does the account have a debit or a 

credit balance? 

A  

Credit balance 

B  

Debit balance 

 

(1 mark) 

21 

Does a debit balance brought down in the Cash T-account represent an asset or a liability? 

A 

An asset  

B 

A liability  

 

(1 mark) 

22 

A company's motor vehicles at cost account at 30 June 20X6 is as follows. 

MOTOR VEHICLES – COST 

 $ 

 

$ 

Balance b/d 

35,800 

Disposal 

 12,000 

Additions  

12,950 

Balance c/d 

 36,750 

 

 48,750 

 

 48,750 

What opening balance should be included in the following period's trial balance for motor 

vehicles – cost at 1 July 20X6?  

A $36,750 

DR 

B $48,750 

DR 

C $36,750 

CR 

D $48,750 

CR 

 

(2 marks) 

BPP Tutor Toolkit Copy

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PRACTICE QUESTION BANK 

 

489 

23 

A company's trade payables account at 30 September 20X1 is as follows.  

TRADE PAYABLES ACCOUNT 

 $ 

 

$ 

Cash at bank 

21,600 

Balance b/d 

 14,000 

Balance c/d 

 11,900 

Purchases  

19,500 

 

 33,500 

 

 33,500 

What opening balance should be included in the following period's trial balance for payables at 

1 October 20X1?  

A $33,500 

DR 

B $11,900 

DR 

C $11,900 

CR 

D $33,500 

CR 

 

(2 marks) 

24 

An accountant has inserted all the relevant figures into the trade receivables account, but has not 

yet balanced off the account.  

TRADE RECEIVABLES ACCOUNT 

 $ 

 

$ 

Balance b/d 

100,750 

Cash at bank 

250,225 

Sales 325,010 

 

 

 

 

 

 

Assuming there are no other entries to be made, other than to balance off the account, what is 

the closing balance on the trade receivables account?  

A $425,760 

DR 

B $175,535 

DR 

C $425,760 

CR 

D $175,535 

CR 

 

(2 marks) 

25 

Sales tax should be included in the statement of profit or loss of a registered trader. 

Is this statement true or false? 

A True 

B False 

 

(1 mark) 

26 

Which of the following statements about sales tax is/are true?  

1 

Sales tax charged on purchases is an expense to a business if the business is not sales tax 

registered.  

2 

Sales tax is charged by all businesses when they sell products. 

A 1 

only 

B 2 

only 

C 

Both 1 and 2 

D 

Neither 1 or 2 

 

(2 marks) 

BPP Tutor Toolkit Copy

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           PRACTICE QUESTION BANK 

 

490

 

27 

A sales tax registered business in its first period of trading charges $8,000 of sales tax on its 

sales and suffers $6,750 of sales tax on its purchases which includes $1,250 irrecoverable sales 

tax on business entertaining. 

How much sales tax is due to or receivable from the tax authorities at the end of the first