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The total of the discount column on the debit side of the cash book had been debited to discount received instead of correctly posted. Which accounts correct this error?
- Discount allowed
- Discount received
- Suspense
Option B (1 and 2 only) is correct.
The debit side discount column = discounts allowed. Correct entries: Debit discount allowed; Credit discount received. The error debited discount received instead of crediting it. Correction uses discount allowed and discount received only — no suspense needed as both sides of the trial balance are equally affected.
A particle covers half its total distance with speed $v_1$ and the remaining half with speed $v_2$. Its average speed over the entire journey is:
Let total distance $= 2d$.
Total time $= \dfrac{d}{v_1} + \dfrac{d}{v_2} = \dfrac{d(v_1+v_2)}{v_1 v_2}$
Average speed $= \dfrac{2d}{\dfrac{d(v_1+v_2)}{v_1 v_2}} = \mathbf{\dfrac{2v_1 v_2}{v_1+v_2}}$
(This is the harmonic mean of $v_1$ and $v_2$.)
A trader provided the following data:
| Item | Jan 1 ($) | Dec 31 ($) |
|---|---|---|
| Bank (Debit) | 4,240 | 6,320 |
| Cash balance | 264 | 271 |
During the year: Cheques issued were $19,950. All sales takings were banked except for $5,400 used for drawings and $7,200 for wages. Additionally, $3,000 was banked from the sale of a motor vehicle. Calculate total sales.
1. Cash banked from sales = Closing Bank ($6,320) + Cheques issued ($19,950) - Opening Bank ($4,240) - Sale of Asset ($3,000) = $19,030.
2. Total Sales = Banked Sales ($19,030) + Cash Drawings ($5,400) + Cash Wages ($7,200) + (Closing Cash $271 - Opening Cash $264) = $19,030 + $5,400 + $7,200 + $7 = $31,637.
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