Purchase Ledger Accounting Revision Questions

Purchase Ledger Accounting Revision Questions

1)  In which one of the following documents are credit purchase details recorded?

1. Sales Ledger
2. Purchase Returns Daybook
3. Purchase Ledger
4. All of the above

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2)  Which one of the following pairs of accounts does a cash purchase of a computer involve?

1. Bank and Equipment
2. Suppliers and Bank
3. Bank and Creditors Control
4. Equipment and Creditors Control

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3)  You buy a van on credit.  Which one of the following pairs of accounts is involved?

1. Vehicles and Bank
2. Creditors Control and Bank
3. Vehicles and Creditors Control
4. Debtors Control and Vehicles

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4)  A supplier who give you credit is one of your Trade Debtors.

1. True
2. False

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5)  Which one of the following documents do you receive when you return part of a purchase to the supplier?

1. A daybook
2. An invoice
3. A bill
4. A credit note

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6)  You make a credit purchase for £500.  Which one of the following statements is correct?

1. The Trade Debtors account is credited by £500
2. The Bank account is credited by £500
3. The Trade Creditors account is credited by £500
4. The Purchases account is credited by £500

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7)  To which one of the following categories does the Trade Creditors account belong?

1. Asset
2. Liabilities
3. Source of Funds
4. Expenses

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8)  You make a purchase for £500.  You pay on time and recieve a 10% discount.  Which one of the following statements is true?

1. The Trade Debtors account is credited with £50 and the Discounts Received account is debited with £50
2. The Trade Creditors account is debited with £50 and the Discounts Received account is credited with £50
3. The Trade Creditors account is credited with £50 and the Purchases account is debited with £50
4. None of the above

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Purchase Ledger Accounting Revision Answers

1)  Option (c) is correct.  All purchases are recorded in the Purchase Ledger.

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2)  Option (a) is correct.  Since it is a cash purchase the Bank account is involved.  It is common practice to record computers as equipment.

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3)  Option (c) is correct.  Obviously the Vehicles account is involved.  Since you purchased on credit, the Creditors Control account is involved.

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4)  Option (b) is correct.  This is false.  A supplier who give you credit is a Trade Creditor.

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5)  Option (d) is correct.  When you return something you have purchased, the supplier will issue a credit note.  You use this as a source document to adjust your accounts.

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6)  Option (c) is correct.  A credit purchase must involve the Trade Creditors account.  It is a liability account that has increased, so it is credited.  The Bank account is not involved since it is a credit purchase.  The Purchase account is involved but it should be debited.

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7)  Option (b) is correct.  Trade Creditors is classified as a Liabilities account in the Chart of Accounts.

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8)  Option (b) is correct.  You owe £50 less, so the Trade Creditors account is debited.  Purchase discounts are recorded in the Discounts Received account.  This is a Revenue account, it has increased, so it is credited.

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