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

PART C: THE USE OF DOUBLE-ENTRY AND ACCOUNTING SYSTEMS 

 

86

 

1 

What is the double entry to record a cash sale of $50?  

2 

What is the double entry to record a credit sale of $50? 

A 

DEBIT cash $50, CREDIT sales $50 

B 

DEBIT receivables $50, CREDIT sales $50 

C 

DEBIT sales $50, CREDIT receivables $50 

 

D 

DEBIT sales $50, CREDIT cash $50  

3 

The double entry to record a purchase of office chairs for $1,000 is: 

 

DEBIT non-current assets $1,000, CREDIT cash $1,000. True or false? 

4 

A debit/credit* will increase a liability and decrease an asset, whereas a debit/credit* will decrease a 

liability and increase an asset.  

 

* Select one item to complete the sentence. 

5 

Name one reason for making a journal entry. 

6 

Individual customer accounts are kept in the …………  ………….. 

QUICK QUIZ 

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CHAPTER 5  

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  LEDGER ACCOUNTS AND DOUBLE ENTRY