These eight original questions cover the four skills in double entry and ledgers. All amounts are in RM and every name is invented.
Write your own answer before you open each answer block. You can also run a timed set with the timed practice session builder.
Questions
1. Ravi pays RM4 000 of his own money into the business bank account. Write the entry.
Answer
Bank (asset) rises and Capital rises. Debit Bank 4 000, credit Capital 4 000.
2. The business buys goods for resale, RM1 800 on credit from Bunga Supplies. Write the entry.
Answer
Purchases rises, and the business owes Bunga Supplies. Debit Purchases 1 800, credit Bunga Supplies 1 800.
3. The business pays RM350 for electricity by cheque. Write the entry and state the type of each account.
Answer
Debit Electricity 350 (expense), credit Bank 350 (asset). Bank falls, so it is credited. The expense rises, so it is debited.
4. The owner takes RM200 cash from the till for a family dinner. Write the entry and explain why it is not an expense.
Answer
Debit Drawings 200, credit Cash 200. The money left the business for the owner’s personal use, not to earn income, so it reduces capital and never enters the profit calculation.
5. Post question 2 (bought on 4 March) and this payment to the Bunga Supplies account: on 15 March the business pays RM800 to Bunga Supplies by cheque. Show the account with the details column.
Answer
The purchase is on the credit side, and the payment is on the debit side.
| Debit | RM | Credit | RM |
|---|---|---|---|
| 15 Mar Bank | 800 | 4 Mar Purchases | 1 800 |
The details column names the other account each time. Bunga Supplies is still owed 1 000.
6. Balance this Cash account. Debit side: Capital 3 000, Sales 1 400, Sales 900. Credit side: Wages 1 200, Rent 500, Drawings 300.
Answer
Debits: 3 000 + 1 400 + 900 = 5 300. Credits: 1 200 + 500 + 300 = 2 000. Difference: 3 300.
Write balance c/d 3 300 on the credit side. Both totals are 5 300. Bring down balance b/d 3 300 on the debit side. The business holds RM3 300 in cash.
7. The trial balance shows debits RM900 larger than credits. You find that a cheque payment of RM450 for stationery was debited to Stationery and also debited to Bank. Explain the difference and write the correction.
Answer
Bank should have been credited. A debit instead of a credit raises the debit total by 450 and lowers the credit total by 450, so the gap is 2 × 450 = 900.
Correction: debit Suspense 900, credit Bank 900. This clears the suspense balance that was opened to balance the trial balance.
8. A rent payment of RM500 was entered as debit Rent 500 and credit Bunga Supplies 500. Does the trial balance still agree? Write the correction.
Answer
Yes, the totals still agree because debits equal credits. The error is a wrong account: Bunga Supplies was credited instead of Bank.
Correction: debit Bunga Supplies 500, credit Bank 500. This cancels the wrong credit and records the payment from Bank.
If you got these wrong
- Questions 1 to 4: revisit deciding debit and credit entries.
- Questions 5 and 6: read posting journal entries to ledgers and balancing ledger accounts.
- Questions 7 and 8: go to tracing an error through both sides of a transaction.
Record every miss in the mistake log. For a teacher who works through your attempts, see online one-to-one Accounting tuition.