Classwork Debit/Credit

 Classwork

Select the correct answer

1. A business pays a supplier 100 in cash, which account does it credit?

  • Accounts payable
  • Cash

2. A business buys new plant and machinery from a supplier who gives 30 days credit. Which account should the business debit?

  • Fixed assets
  • Cash

3. Goods are bought on credit for 300, is the entry to the purchases account a debit or a credit?

  • Debit
  • Credit

4. Cash is introduced to a business by the owner as equity. Which account does the credit entry go to?

  • Loan account
  • Capital account

5. A friend of the owner lends the business 1,000. Which account is credit entry made to?

  • Cash
  • Loans

6.A customer pays a sales invoice for 500 in cash, what entry is made to the sales ledger (accounts receivable) control?

  • Credit
  • Debit

 7. A supplier returns goods to the business and a credit note is issued, what entry is made on the creditor (accounts payable) control.

  • Credit
  • Debit

8. Are fixtures and fittings assets or liabilities?

  • Assets
  • Liabilities

9. The business has a loan of 10,000 from a bank. Is the loan an asset or a liability?

  • Liability
  • Asset

10. The business owes a supplier 500 for goods purchased and received. Is the amount owed to the supplier an asset or a liability?

  • Liability
  • Asset

 

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