These eight questions ramp from choosing the book to a mixed cash book entry. Write your own working, then open each answer.
The notes for the chapter are at books of prime entry. For timed practice, use the timed original practice session builder.
Questions 1 to 4: choosing and recording
Question 1. Name the book for each: (a) goods sold on credit, (b) goods returned to a supplier, (c) office furniture bought on credit, (d) cheque received from a customer.
Answer
(a) Sales journal. (b) Purchases returns journal. (c) General journal, since furniture is not goods for resale. (d) Cash book, in the bank column.
Question 2. Goods listed at RM800 are sold on credit to Hana with a 25% trade discount. Find the amount entered in the sales journal.
Answer
Trade discount = 25% × 800 = RM200. Net invoice = 800 − 200 = RM600.
Question 3. Hana in Question 2 returns goods with a listed value of RM80. Find the return value and the balance she owes.
Answer
Listed RM80 less 25% gives 80 × 75% = RM60. Balance owed = 600 − 60 = RM540.
Question 4. A customer returns 4 units from an invoice priced at RM15 each with a 20% trade discount. Find the amount credited to the customer.
Answer
Net amount per unit = 15 × 80% = RM12. Credit = 4 × 12 = RM48.
Questions 5 to 8: the cash book and discounts
Question 5. A customer owes RM1 500 after trade discount and pays by cheque within the discount period. A 2% cash discount applies. Find the cheque amount and the discount allowed.
Answer
Discount allowed = 2% × 1 500 = RM30. Cheque = 1 500 − 30 = RM1 470.
Question 6. A supplier invoice is listed at RM3 000 with a 10% trade discount and 4% cash discount for early payment. Find the amount paid.
Answer
Net invoice = 3 000 − 300 = RM2 700. Cash discount = 4% × 2 700 = RM108. Payment = 2 700 − 108 = RM2 592.
Question 7. Cash RM300 is paid into the bank. Show the cash book entry and state why it is called a contra.
Answer
Debit the bank column RM300 and credit the cash column RM300. It is a contra because both sides are in the same book, so money moves between columns and no total changes.
Question 8. Cash starts at RM400 and bank at RM2 000. Cash sales of RM600 come in, RM500 cash goes to the bank, and a RM900 cheque pays rent. Find both closing balances.
Answer
Cash: 400 + 600 − 500 = RM500. Bank: 2 000 + 500 − 900 = RM1 600.
If you got these wrong
Match the pattern to the lesson and retry only those questions.
- Question 1: choosing the correct journal.
- Questions 2 to 4: recording sales, purchases and returns.
- Questions 5 and 6: handling discounts in the appropriate records.
- Questions 7 and 8: recording transactions in a cash book.
Use the mistake log and paper-error review to spot your pattern first.
A teacher in one-to-one Accounting tuition can go through your working if the same error returns.