Palgrave Macmillan: Companion website for Collis - Business Accounting: Chapter 4

Using the accounting equation, if assets are £25,000 and liabilities are £16,000, capital is:
1. £50,000
2. £41,000
3. £16,000
4. £9,000
Using the accounting equation, if capital is £10,000 and assets are £75,000, liabilities are:
1. £100,000
2. £75,000
3. £65,000
4. £55,000
Using the accounting equation, if capital is £75,000 and liabilities are £25,000, assets are:
1. £175,000
2. £100,000
3. £50,000
4. £25,000
To record a sale that has been made for cash, the bookkeeper will:
1. debit the cash account and credit the sales account
2. credit the cash account and debit the sales account
3. debit the cash account and debit the sales account
4. credit the cash account and credit the sale account
To record a bank loan taken out by the business, the bookkeeper will:
1. debit the bank account and debit the loan account
2. debit the bank account and credit the loan account
3. credit the bank account and credit the loan account
4. credit the bank account and debit the loan account
To record the receipt of cash from a customer who had bought goods on credit, the bookkeeper will:
1. debit the creditor’s account and credit the bank account
2. credit the creditor’s account and debit the debtor’s account
3. credit the creditor’s account and debit the bank account
4. credit the debtor’s account and debit the bank account

Img