ACCTG 111 - Fundamentals of Accounting /

Financial Accounting and Reporting Part 1

Lesson 3 Recording Business Transactions
QUIZ #4
NAME:
COURSE:

Write T if the entry is True, and F if it is False.

_______1 Paid to Leni & Co. in cash 1,000 Pesos

Debit Accounts Payable 1,000.00
Credit Cash 1,000.00

_______2 Purchased goods for 4,000 Pesos on cash.

Debit Merchandise Inventory 4,000.00
Credit Cash 4,000.00

_______3 Purchased goods on credit from Leni & Co. for 2,000 Pesos.
Debit Merchandise Inventory 2,000.00
Credit Accounts Payable 2,000.00

_______4 Invested Capital of 20,000 Pesos.

Debit Cash 20,000.00
Credit Capital 2,000.00

_______5 Bought plant and machinery for 8,000 Pesos on cash.

Debit Plant and Machinery 8,000.00
Credit Cash 8,000.00

_______6 In a Trial Balance, total debits should equal total credits

_______7 The Trial Balance is a list of the ending balances of all the accounts in a ledger

_______8 The accounts in the Trial Balance is listed in same order as they appear in Chart of Accounts

_______9 In balancing the equation, Debit totals must equal credit totals

_______10 You can have multiple debits with one credit, multiple credits with one debit, or both.