This set has eleven original questions, ordered from easier to harder, covering all five lessons in double-entry foundations. Questions 1 to 4 are warm-ups on debit and credit, 5 to 8 cover sales, posting and balancing, and 9 to 11 ask you to diagnose and correct.
All businesses and figures are fictional. Cover the answer, write your own debit and credit, then open the working and compare the reason as well as the accounts. The double-entry and ledger trainer can check your debits and credits as you go.
Questions
1. State the account type and the normal balance side (debit or credit) of each: Bank, Rent expense, Loan from bank, Commission income, Drawings, Trade payables.
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| Account | Type | Normal balance |
|---|---|---|
| Bank | Asset | Debit |
| Rent expense | Expense | Debit |
| Loan from bank | Liability | Credit |
| Commission income | Income | Credit |
| Drawings | Reduces capital | Debit |
| Trade payables | Liability | Credit |
Assets and expenses increase with a debit. Liabilities, capital and income increase with a credit. Drawings reduce capital, so they sit on the debit side.
2. Bunga Mart, a fictional shop, starts when the owner pays RM6,000 into the business bank account. Give the debit and credit.
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Bank is an asset that increases: debit. Capital increases: credit.
Debit Bank RM6,000; credit Capital RM6,000.
3. Bunga Mart buys shop fittings for RM1,800 and pays by cheque from the bank account. Give the debit and credit.
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Shop fittings is an asset that increases: debit. Bank is an asset that decreases: credit.
Debit Shop fittings RM1,800; credit Bank RM1,800.
4. The owner takes RM300 cash from the till for personal use. Give the debit and credit.
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Drawings increase: debit. Cash decreases: credit.
Debit Drawings RM300; credit Cash RM300.
5. Bunga Mart sells goods to Rahim for RM950 on credit. Give the debit and credit. Then record Rahim’s later payment of RM500 by bank transfer, and state how much he still owes.
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Sale on credit: debit Rahim RM950; credit Sales RM950. No money has arrived, so Bank is not touched.
Payment: debit Bank RM500; credit Rahim RM500.
Rahim still owes 950 − 500 = RM450.
6. Bunga Mart makes a cash sale of RM380 and a credit sale of RM620 to Devi on the same day. Give the two entries and state the total credited to Sales.
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Cash sale: debit Cash RM380; credit Sales RM380.
Credit sale: debit Devi RM620; credit Sales RM620.
Total credited to Sales: 380 + 620 = RM1,000. Sales is credited for both because income has been earned in each case.
7. On 1 June, the Bank account of Bunga Mart shows the following (using the bank entries from questions 2, 3 and 5, then two more). Post the lines and balance the account.
- 1 June: Capital, RM6,000 received
- 4 June: Shop fittings, RM1,800 paid
- 9 June: Rahim, RM500 received
- 12 June: Sales, RM1,250 received
- 20 June: Wages, RM700 paid
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| Date | Details | RM | Date | Details | RM |
|---|---|---|---|---|---|
| 1 Jun | Capital | 6,000 | 4 Jun | Shop fittings | 1,800 |
| 9 Jun | Rahim | 500 | 20 Jun | Wages | 700 |
| 12 Jun | Sales | 1,250 | 30 Jun | Balance c/d | 5,250 |
| 7,750 | 7,750 | ||||
| 1 Jul | Balance b/d | 5,250 |
Debits: 6,000 + 500 + 1,250 = 7,750. Credits: 1,800 + 700 = 2,500. Difference: 7,750 − 2,500 = RM5,250, a debit balance brought down on 1 July. The business has RM5,250 in the bank.
Notice that the Details column always shows the other account, for example Capital in the Bank account.
8. Rahim’s account in the ledger of Bunga Mart has a debit of RM950 and a credit of RM500. Balance it and explain the balance brought down.
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Debit side is larger: 950. Credit side: 500. Difference: 950 − 500 = RM450.
Write “Balance c/d 450” on the credit side so it totals 500 + 450 = 950, matching the debit side. Bring it down as “Balance b/d 450” on the debit side.
A debit balance on a customer’s account means he owes the business RM450, which is an asset (receivable).
9. Bunga Mart’s account for supplier Bintang Wholesale has debits (payments) of RM600 and RM400, and credits (goods bought on credit) of RM1,100 and RM900. Balance the account and explain what the balance means.
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Debits: 600 + 400 = 1,000. Credits: 1,100 + 900 = 2,000. Credit side is larger. Difference: 2,000 − 1,000 = RM1,000.
“Balance c/d 1,000” goes on the debit side, so both sides total RM2,000. “Balance b/d 1,000” is brought down on the credit side.
A credit balance on a supplier’s account means the business still owes the supplier RM1,000. It is a liability.
10. Bunga Mart buys office furniture for RM1,500 and pays by bank. The bookkeeper records: debit Purchases RM1,500; credit Bank RM1,500. Identify the error, give the correcting entry and state whether a trial balance would reveal it.
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Furniture is an asset, not goods bought for resale. The debit went to the wrong account, although Bank was correct.
Correcting entry: debit Office furniture RM1,500; credit Purchases RM1,500.
A trial balance would not reveal it, because total debits still equal total credits. Purchases was overstated by RM1,500, so profit was understated, and assets were understated by RM1,500.
11. Bunga Mart makes a credit sale of RM700 to Devi. The bookkeeper records: debit Cash RM700; credit Sales RM700. Identify the error, give the correcting entry and describe its effect on Cash and receivables.
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No money has arrived, so Cash should not be debited. The debit should be in Devi’s account.
Correcting entry: debit Devi RM700; credit Cash RM700.
Before correction, Cash was overstated by RM700 and receivables (amounts owed by customers) were understated by RM700. Sales and profit were correct. The trial balance would still agree.
If you got these wrong
Match the type of error to the lesson that repairs it.
- Questions 1 to 4, wrong side or wrong account type: go to select debit and credit from account type.
- Questions 5 and 6, sales recorded as cash or credit: go to record a cash and credit sale distinctly.
- Question 7, layout, details column or references: go to post ledger entries with clear references.
- Questions 7, 8 and 9, balancing and brought-down side: go to balance an account and explain the brought-down side.
- Questions 10 and 11, balanced but misclassified entries: go to diagnose a balanced but wrongly classified entry.
Record each slip in the mistake log and retest queue with the error type, so a fresh question can be retested later.
When the same error returns after a lesson, a teacher in online one-to-one Accounting tuition can trace it through your written working and set questions that test exactly that step.