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CA Foundation Double-Entry Bookkeeping — practice questions

Explore 46 free Double-Entry Bookkeeping questions in CA Foundation Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Double-Entry Bookkeeping questions and exercises with answers

Showing questions 1–30 of 46.

Which golden rule applies to real accounts?Read the answer and worked solution →A business buys equipment with cash. Which account is credited?Read the answer and worked solution →A business receives cash for a sale. Which account is credited?Read the answer and worked solution →A computer worth 500 is bought on credit from ABC Computers. How is ABC's account treated?Read the answer and worked solution →Which statement gives the basic accounting equation?Read the answer and worked solution →By convention, debits are posted on which side of a ledger account?Read the answer and worked solution →In a T-account, which column holds the credit entries?Read the answer and worked solution →Which Franciscan friar's Summa de arithmetica first codified double entry in a mathematics textbook?Read the answer and worked solution →The earliest extant modern double-entry records in Europe come from which Florentine merchant?Read the answer and worked solution →In which year was the modern double entry system described by Luca Pacioli?Read the answer and worked solution →What is the main purpose of double-entry bookkeeping?Read the answer and worked solution →What does a debit to an asset account do to its balance?Read the answer and worked solution →What does a credit entry do to a liability account?Read the answer and worked solution →In the traditional approach, which accounts are called real accounts?Read the answer and worked solution →The accounts of debtors and creditors are classed as which accounts?Read the answer and worked solution →Accounts relating to revenue, expenses, gains and losses are called what?Read the answer and worked solution →Which approach is also called the American approach?Read the answer and worked solution →How many golden rules does the classical approach have?Read the answer and worked solution →A daybook is also called a book of what?Read the answer and worked solution →Which daybook records all monies received and all monies paid out?Read the answer and worked solution →Which daybook is used for recording sales invoices?Read the answer and worked solution →A chronological record of transactions before ledger posting is a what?Read the answer and worked solution →What is a ledger?Read the answer and worked solution →Which book determines the balance of every account?Read the answer and worked solution →Which ledger deals mostly with the accounts receivable account?Read the answer and worked solution →Which system does a petty cash book usually use?Read the answer and worked solution →Who normally maintains the petty cash book?Read the answer and worked solution →The balance of a petty cash book is treated as which kind of item?Read the answer and worked solution →Under cash basis accounting, when is revenue recorded?Read the answer and worked solution →What is the primary purpose of preparing a trial balance?Read the answer and worked solution →

Worked practice questions

Which golden rule applies to real accounts?

  1. Debit what goes out, credit what comes in
  2. Debit what comes in, credit what goes out
  3. Debit the receiver, credit the giver
  4. Debit expenses, credit incomes and gains
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Correct answer: B. Debit what comes in, credit what goes out

Real accounts hold assets, so whatever enters the business is debited and whatever leaves is credited.

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A business buys equipment with cash. Which account is credited?

  1. Equipment
  2. Cash
  3. Sales
  4. Capital
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Correct answer: B. Cash

Cash is an asset that decreases when paid out, and a decrease in an asset is a credit.

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A business receives cash for a sale. Which account is credited?

  1. Cash
  2. Capital
  3. Debtors
  4. Sales
Show answer and solution

Correct answer: D. Sales

Sales is an income account, so the increase in income is recorded on the credit side while cash is debited.

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