Accounting Multiple Choice Question – 17 May 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Accounting

Which of the following is a ‘Book of Original Entry’?

Select ONE answer:

  1. The sales (debtors) ledger.
  2. The purchases journal (daybook).
  3. The general (nominal) ledger.
  4. The purchases (creditors) ledger.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 2

  1. Data is ‘posted’ to the Sales Ledger from the Sales Journal, the Cash Book and possibly the Journal. Therefore, the Sales Ledger is not the first place in which the information in it is recorded.
  2. Books of original entry are so called because they are the first (original) place in which transactions are recorded. They are also known as ‘Books of Prime Entry’.
  3. Data is ‘posted’ to the general ledger from the Books of Original Entry. Therefore, the General Ledger is not the first place in which the information in it is recorded.
  4. Data is ‘posted’ to the purchases ledger from the Purchases Journal, the Cash Book and possibly the Journal. Therefore, the Purchases Ledger is not the first place in which the information in it is recorded.

 

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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