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ANH VĂN CHUYÊN NGÀNH 1 – AC10 Hướng dẫn cách tra đáp án: Những câu hỏi chung chung thì anh chị tra cứu bằng đáp án cho nhanh (phím tắt CTRL + F) Có nhiều đáp án giống nhau, hoặc trùng nhau, nhưng khác câu hỏi, anh chị đọc kỹ câu hỏi. Chúc anh chị thi tốt 1. You are presented with the following data:Assets 13,970Capital 2,934Liabilities 11,576What comment would you make? a. the two sides are equal b. the equation is correct c. the two sides are not equal. One figure must be incorrect (Đ) d. Capital is correct 2. The capital equation is: a. Assets less liabilities equals capital (Đ) b. Liabilities equals assets less capital c. Capital equals assets and liablities d. Assets equals capital and liabilities 3. A general term for amounts owing to persons other than the owner is …… a. reditordebtor b. liabilities (Đ) c. loan d. creditor 4. In the following transaction: ‘The owner puts a further amount into the business by cheque’, which account is debited and which account is credited? a. debit the owner’s account credit bank account b. debit bank account credit the owner’s account c. debit the owner’s account credit capital account d. debit bank account credit capital account (Đ) 5. According to doubleentry rules, if a liability decreases, ……. a. Liability account will be credited b. Liability account will be debited and credited c. Liability account will be debited or credited d. Liability account will be debited (Đ) 6. Which item below is not an asset? a. Motor vehicle b. Debtor c. Cash d. Creditor (Đ) 7. According to doubleentry rules, if an asset increases, ……. a. asset account will be debited and credited b. asset account will be debited or credited c. asset account will be debited (Đ) d. asset account will be credited 8. ‘Capital’ is ……………. a. a type of financial statement b. the amount of the owner’s stake in the business. (Đ) c. resources or items owned by the business d. record of transactions by categories 9. Ttype Ledger accounts has the following format: a. Onesided account only with debit side b. twosided account with credit side on the left and debit side on the right c. onesided account only with credit side d. twosided account with debit side on the left and credit side on the right (Đ) 10. ‘Balance sheet’ is ……… a. resources or items owned by the business b. a type of financial statement (Đ) c. record of transactions by categories d. the amount of the owner’s stake in the business. 11. ………….. Ledger is used to record debtor accounts a. Purchases b. Private c. Sales (Đ) d. General 12. The word ……… in the heading of the balance sheet is linked to the idea of the snapshot photograph. a. month b. with c. at (Đ) d. equal 13. ……….. is a general term for activities of the business. a. capital b. purchases c. sales d. transactions (Đ) 14. ………….. Ledger is used to record creditor accounts a. Sales b. General c. Private d. Purchases (Đ) 15. ………….. is a direct means of transferring money through the bank systems, which is initiated by the paying party. a. standing order b. credit transfer (Đ) c. direct debit d. cheque 16. From the transaction below: ‘A Smith owed the business £1,800 for the goods sold to him he paid his debt within required time; hence 3% cash discount was given to him’. How much did A Smith actually pay? a. £1,800 b. £1,746 (Đ) c. £1,756 d. £54
1 ANH VĂN CHUYÊN NGÀNH – AC10 Hướng dẫn cách tra đáp án: Những câu hỏi chung chung anh chị tra cứu đáp án cho nhanh (phím tắt CTRL + F) Có nhiều đáp án giống nhau, trùng nhau, khác câu hỏi, anh chị đọc kỹ câu hỏi Chúc anh chị thi tốt! You are presented with the following data:Assets 13,970Capital 2,934Liabilities 11,576What comment would you make? a the two sides are equal b the equation is correct c the two sides are not equal One figure must be incorrect (Đ) d Capital is correct The capital equation is: a Assets less liabilities equals capital (Đ) b Liabilities equals assets less capital c Capital equals assets and liablities d Assets equals capital and liabilities A general term for amounts owing to persons other than the owner is …… a reditordebtor b liabilities (Đ) c loan d creditor In the following transaction: ‘The owner puts a further amount into the business by cheque’, which account is debited and which account is credited? a debit the owner’s account & credit bank account b debit bank account & credit the owner’s account c debit the owner’s account & credit capital account d debit bank account & credit capital account (Đ) According to double-entry rules, if a liability decreases, …… a Liability account will be credited b Liability account will be debited and credited c Liability account will be debited or credited d Liability account will be debited (Đ) Which item below is not an asset? a Motor vehicle b Debtor c Cash d Creditor (Đ) According to double-entry rules, if an asset increases, …… a asset account will be debited and credited b asset account will be debited or credited c asset account will be debited (Đ) d asset account will be credited ‘Capital’ is …………… a a type of financial statement b the amount of the owner’s stake in the business (Đ) c resources or items owned by the business d record of transactions by categories T-type Ledger accounts has the following format: a One-sided account only with debit side b two-sided account with credit side on the left and debit side on the right c one-sided account only with credit side d two-sided account with debit side on the left and credit side on the right (Đ) 10 ‘Balance sheet’ is ……… a resources or items owned by the business b a type of financial statement (Đ) c record of transactions by categories d the amount of the owner’s stake in the business 11 ………… Ledger is used to record debtor accounts a Purchases b Private c Sales (Đ) d General 12 The word ……… in the heading of the balance sheet is linked to the idea of the snapshot photograph a month b with c at (Đ) d equal 13 ……… is a general term for activities of the business a capital b purchases c sales d transactions (Đ) 14 ………… Ledger is used to record creditor accounts a Sales b General c Private d Purchases (Đ) 15 ………… is a direct means of transferring money through the bank systems, which is initiated by the paying party a standing order b credit transfer (Đ) c direct debit d cheque 16 From the transaction below: ‘A Smith owed the business £1,800 for the goods sold to him & he paid his debt within required time; hence 3% cash discount was given to him’ How much did A Smith actually pay? a £1,800 b £1,746 (Đ) c £1,756 d £54 17 In the accounting equation, …… a The two sides will never be equal to one another b Total of assets is always smaller than total of capital and liabilities c The two sides will always be equal to one another (Đ) d Total of assets is always bigger than total of capital and liabilities 18 Book-keeping entries relating to Payment received from debtor are: a credit bank/ cash account & debit debtor’s account b debit bank/ cash account & credit debtor’s account (Đ) c debit bank/ cash account & debit debtor’s account d credit bank/ cash account & credit debtor’s account 19 The account ‘Bank’ has transactions during July, Year 4, including debit entries with £2,000 and credit entries with £170 and £240 How much is the balance of this account at the end of July, Year 4? a £1,590 Cr b £1,690 Cr c £1,590 Dr (Đ) d £1,690 Dr 20 ………… is used to record Cash & Bank accounts a Cash book (Đ) b General Ledger c Sales Ledger d Private Ledger 21 ……………… account is used for regular banking and withdrawal of money a current (Đ) b deposit c cheque d credit transfer 22 In the transaction: ‘Paid £442 in cash to A Dobbs in settlement of a debt of £450’ What entries in the Cash book are done? a Cr Discount allowed £8 & Cr Cash £442 b Dr Cash £442 c Cr Discount received £8 & Cr Cash £442 (Đ) d Cr Cash £442 23 In the transaction: ‘Withdrew £420 from bank to make cash in office’ What entries in the Cash book are done?Nếu vụ án khơng thuộc thẩm quyền Tịa án phải trả hồ sơ cho Viện kiểm sát a Dr Bank £420 & Dr Cash £420 b Cr Bank £420 & Cr Cash £420 c Cr Bank £420 & Dr Cash £420 (Đ) d Dr Bank £420 & Cr Cash £420 24 From the transaction below: ‘You owed A John, a creditor £2,000 for the goods bought from him & you paid your debt within required time; hence 3% cash discount was received’ How much cash discount did you received? a £1,940 b £2,000 c £60 (Đ) d £1,960 25 Which item below is not an expense? a rent payable b insurance c rent receivable (Đ) d wages, salaries 26 The term ‘Drawings’ means a withdrawals from a business by the owner for the owner’s private use: in cash or goods/ services (Đ) b withdrawals from a business by the owner for the use of both the owner and the business: in cash or goods/ services c withdrawals from a business by the owner for the business’ use: in cash or goods/ services d withdrawals from a business by the owner for the business’ private use: in cash or goods/ services 27 Book-keeping entries relating to Credit Sales are: a credit customer’s (debtor’s) account & debit sales account b debit customer’s (debtor’s) account & debit sales account c debit customer’s (debtor’s) account & credit sales account (Đ) d credit customer’s (debtor’s) account & credit sales account 28 The term ‘Transaction on credit’ means …… a taking an ownership of an asset now, but paying for it at later stage (Đ) b a record of transactions by category (purchases, for example), or by person or organization c person (or business) to whom money is owed by the business d person (or business) who owes money for goods or services supplied by the business 29 Book-keeping entries relating to Credit Purchase are: a debit purchases account & credit supplier’s (creditor’s) account (Đ) b credit purchases account & debit supplier’s (creditor’s) account c credit purchases account & credit supplier’s (creditor’s) account d debit purchases account & debit supplier’s (creditor’s) account 30 Book-keeping entries relating to Purchases Returns are: a credit Returns Outwards account & debit supplier’s (creditor’s) account (Đ) b credit Returns Inwards account & debit debtor’s account c debit Returns Inwards account & credit debtor’s account d debit Returns Outwards account & credit supplier’s (creditor’s) account 31 The main difference between ‘Expenses’ and ‘Drawings’ is that…… a ‘Expenses’ is the costs of running a business and ‘Drawings’ is withdrawals from a business by the owner for the business’ use b ‘Expenses’ is the costs of running a business and ‘Drawings’ is withdrawals from a business by the owner for his private use (Đ) c ‘Expenses’ is the costs of running a business and ‘Drawings’ is withdrawals from a business by the owner for both his private use and business’ use d ‘Drawings’ is the costs of running a business and ‘Expenses’ is withdrawals from a business by the owner for his private use 32 Where balances are carried forward from one page to the next, ‘balance ………’ would appear at the bottom of one page and ‘balance …….’ at the top of the next page a b/d – c/d b b/f – c/f c c/d – b/d d c/f – b/f (Đ) 33 The difference between current account and deposit account is that current account is used for ………… banking and withdrawal of money, and in deposit account withdrawals will be ………… a regular/ infrequent (Đ) b infrequent/ Regular c infrequent/ infrequent d regular/ regular 34 From the transaction below: ‘A Smith owed the business £1,800 for the goods sold to him & he paid his debt within required time; hence 3% cash discount was given to him’ How much cash discount was given to him? a £1,756 b £1,746 c £1,800 d £54 (Đ) 35 In the transaction below: ‘You owed A John, a creditor for the goods bought from him & you paid your debt within required time; hence A John gave you cash discount’ What kind of discount is it? a Cash discount b discount allowed c Trade discount d discount received (Đ) is a general term for activities of the business capital purchases sales transactions is an amount received from creditors when paying them within required time cash discount discount allowed discount received trade discount accounts are individual accounts of debtors and creditors impersonal nominal personal real accounts cover asset accounts such as premises, motor vehicles, etc impersonal nominal personal real accounts cover various income and expense accounts, e.g sales, wages, etc Impersonal nominal Personal Real means a charge paid by the firm to carrier for delivering goods to customers: Cost of distribution carriage outwards carriage inwards returns inwards returns outwards is used to record Cash & Bank accounts Cash book General Ledger Private Ledger Sales Ledger is a direct means of transferring money through the bank systems, which is initiated by the paying party cheque credit transfer direct debit standing order is direct transfer between bank accounts, involving fixed accounts at regular intervals Cheque credit transfer direct debit standing order 10 Ledger is used to record creditor accounts General Private Purchases Sales 11 Ledger is used to record debtor accounts General Private Purchases Sales 12 is indicated in the invoice and recorded in the accounts Cash discount Discount allowed Discount received Trade discount 13 account is used for regular banking and withdrawal of money cheque credit transfer current deposit 14 ‘Balance sheet’ is a type of financial statement record of transactions by categories resources or items owned by the business the amount of the owner’s stake in the business 15 ‘Capital’ is a type of financial statement record of transactions by categories resources or items owned by the business the amount of the owner’s stake in the business 16 types of personal accounts include capital, supplier, customer, and bank cash drawings sales 17 A is someone who owes you money after you sell him/ her on credit creditor debtor liabilities loan 18 A is someone to whom you owe money after you buy on credit Creditor Debtor 10 Liabilities Loan 19 A general term for amounts owing to persons other than the owner is creditor liabilities loan reditordebtor 20 According to double-entry rules, if a liability decreases, Liability account will be credited Liability account will be debited Liability account will be debited and credited Liability account will be debited or credited 21 According to double-entry rules, if an asset increases, asset account will be credited asset account will be debited asset account will be debited and credited asset account will be debited or credited 22 Book-keeping entries relating to Cash Purchases are: credit purchases account & credit Cash/ Bank account credit purchases account & debit Cash/ Bank account debit purchases account & credit Cash/ Bank account debit purchases account & debit Cash/ Bank account 23 Book-keeping entries relating to Cash Sales are: credit Cash/ Bank account & credit Sales account credit Cash/ Bank account & debit Sales account debit Cash/ Bank account & credit Sales account debit Cash/ Bank account & debit Sales account 24 Book-keeping entries relating to Credit Purchase are: credit purchases account & credit supplier’s (creditor’s) account credit purchases account & debit supplier’s (creditor’s) account debit purchases account & credit supplier’s (creditor’s) account debit purchases account & debit supplier’s (creditor’s) account 25 Book-keeping entries relating to Payment received from debtor are: credit bank/ cash account & credit debtor’s account 11 credit bank/ cash account & debit debtor’s account debit bank/ cash account & credit debtor’s account debit bank/ cash account & debit debtor’s account 26 Book-keeping entries relating to Payment to creditor are: credit creditor’s account & credit bank/ cash account credit creditor’s account & debit bank/ cash account debit creditor’s account & credit bank/ cash account debit creditor’s account & debit bank/ cash account 27 Book-keeping entries relating to Purchases Returns are: credit Returns Inwards account & debit debtor’s account credit Returns Outwards account & debit supplier’s (creditor’s) account debit Returns Inwards account & credit debtor’s account debit Returns Outwards account & credit supplier’s (creditor’s) account 28 Book-keeping entries relating to Sales Returns are: credit Returns Inwards account & debit debtor’s account credit Returns Outwards account & debit supplier’s (creditor’s) account debit Returns Inwards account & credit debtor’s account debit Returns Outwards account & credit supplier’s (creditor’s) account 29 Calculate Current Liabilities from the following details: Fixed assets: £53,000; Current assets: £28,500; Capital: £ 66,500; Long-term liabilities: £8,300 £6,700 £23,300 £74,800 £81,500 30 Calculate Gross Profit from the following details: Cost of goods sold: £15,200; Sales £23,700, Returns Inwards £1,420 £7,080 £22,280 £8,500 £9,920 31 Calculate Net Profit from the following details: Gross profit: £12,000; Rent payable: £1,500; Rent receivable: £420; Wages: £1,210; Insurance: £300; office expenses: £420; travelling expenses: £270 12 £8,720 £7,880 £8,270 £8,780 32 Calculate Net Profit from the following details: Gross profit: £12,400; Expenses £7,550, Commission £420 £5,270 £4,430 £4,850 £6,370 33 Calculate Net profit from the following details: Total of Capital at the end of period: £62,000; capital at the beginning of period: £48,000; Drawings: £2,420 £16,420 £11,580 £14,000 £40,600 34 Calculate the Fixed Assets from the following details: Total of assets: £73,600; Stock £2,200, Debtors: £2,800, Cash: £ 3,240, Bank: £21,300 £44,060 £40,060 £40,600 £44,600 35 Calculate the total of Assets from the following details: Fixed assets: Furniture and fittings: £12,000; Motor vehicle: £7,000 - Current assets: Stock £2,200, Debtors: £1,850, Cash: £ 3,410, Bank: £13,000 £39,460 £19,000 £20,460 £32,460 36 From Sales Day book, detail is transferred monthly to Sales account in General Ledger Cash book 13 Purchases Ledger Sales Ledger 37 From Sales Day book, detail is transferred promptly to account in Sales Ledger Debtor’s Cash/ Bank Creditor’s Sales 38 From the transaction below: ‘A Smith owed the business £1,500 for the goods sold to him on May 10, Year The terms of sale allow for 3% cash discount for payment within days On May 15, Year 2, A Smith paid his debt by cheque.’What entries in the cash book are necessary for this transaction? Cr Discount allowed £45 & Cr Bank £1,455 Cr Discount allowed £45 & Dr Bank £1,455 Dr Discount allowed £45 & Cr Bank £1,455 Dr Discount allowed £45 & Dr Bank £1,455 39 From the transaction below: ‘A Smith owed the business £1,800 for the goods sold to him & he paid his debt within required time; hence 3% cash discount was given to him’ How much cash discount was given to him? £1,746 £1,756 £1,800 £54 40 From the transaction below: ‘A Smith owed the business £1,800 for the goods sold to him & he paid his debt within required time; hence 3% cash discount was given to him’ How much did A Smith actually pay? £1,746 £1,756 £1,800 £54 41 From the transaction below: ‘A Smith owed the business £1,800 for the goods sold to him & he paid his debt within required time; hence 3% cash discount was given to him’.What kind of discount is it? Cash discount 14 discount allowed discount received Trade discount 42 From the transaction below: ‘Credit sale to P Starkey at list price of £360, subject to 15% trade discount’ How much discount will be given to P Starkey? £54 £306 £316 £360 43 From the transaction below: ‘Credit sale to P Starkey at list price of £360, subject to 15% trade discount’ How much will be recorded into accounts? £306 £316 £360 £54 44 From the transaction below: ‘The business owed L Turner £2,000 for the goods bought from May 20th Year By paying by cheque within a specified time (May 23, Year 2), the business can receive a cash discount of 5%’ What entries in the cash book are necessary for this transaction? Cr Discount received £100 & Cr Bank £1,900 Cr Discount received £100 & Dr Bank £1,900 Dr Discount received £100 & Cr Bank £1,900 Dr Discount received £100 & Dr Bank £1,900 45 From the transaction below: ‘You owed A John, a creditor £2,000 for the goods bought from him & you paid your debt within required time; hence 3% cash discount was received’ How much cash discount did you received? £1,940 £1,960 £2,000 £60 46 From the transaction below: ‘You owed A John, a creditor £2,000 for the goods bought from him & You paid your debt within required time; hence 3% cash discount was received’ How much did you have to pay? 15 £1,940 £1,960 £2,000 £60 47 From the transaction: ‘Credit purchase from A John at list price of £880, subject to 20% trade discount’ How much discount will the business receive? £176 £167 £704 £880 48 From the transaction: ‘Credit purchase from A John at list price of £880, subject to 20% trade discount’ How much will the business record into Day book? £704 £176 £740 £880 49 From the transaction: ‘Credit purchase from S Letts at list price of £250, subject to 10% trade discount; then return goods to S Letts at list price £40’ How much will the business finally owe S Letts? £189 £210 £36 £4 50 From the transaction: ‘Credit purchase from S Letts at list price of £250, subject to 10% trade discount; then return goods to S Letts at list price £40’ How much will the business record in Return Outwards account? £36 £210 £4 £40 51 From the transaction: ‘Credit purchase from S Letts at list price of £250, subject to 10% trade discount’ In what Day book and what accounts will it be recorded & How much will it be recorded? 16 Purchases Day book; Dr Purchases £225 ; Cr S Letts £225 Purchases Day book; Dr Purchases £250 ; Cr S Letts £250 Sales Day book; Dr S Letts £225 ; Cr Sales £225 Sales Day book; Dr S Letts £250 ; Cr Sales £250 52 From the transaction: ‘K Devine returns to us goods with a list price of £150 No discount was previously made.’ In what accounts will it be recorded? Dr Returns Inwards £150 & Cr K Devine £150 Cr K Devine £150 & Dr Returns Outwards £150 Cr Returns Inwards £150 & Dr K Devine £150 Dr K Devine £150 & Cr Returns Outwards £150 53 From the transaction: ‘Return goods to S Letts at list price £40’ In what Day book and what accounts will it be recorded? Returns Outwards Day book; Dr S Letts a/c & Cr Returns Outwards a/c Returns Inwards Day book; Dr Purchases a/c & Cr S Letts Returns Inwards Day book; Dr Returns Inwards a/c & Cr S Letts Returns Outwards Day book; Dr Returns Outwards a/c & Cr S Letts a/c 54 From the transaction: ‘S Smart –a debtor returned goods to the business’ In what accounts & what ledger will it be recorded? Dr Returns Inwards a/c in General Ledger & Cr S Smart a/c in Sales Ledger Cr Returns Outwards a/c in General Ledger & Dr S Smart a/c in Sales Ledger Dr Returns Inwards a/c in General Ledger & Cr S Smart a/c in Purchases Ledger Dr Returns Outwards a/c in General Ledger & Cr S Smart a/c in Sales Ledger 55 How is ‘Carriage inwards’ treated in final accounts? Carriage inwards is added into expense column Carriage inwards is added to the amount of Purchases Carriage inwards is deducted in amount of Sales Carriage inwards is deducted in the amount of Purchases 56 How is ‘Carriage Outwards’ treated in final accounts? Carriage inwards is added into expense column Carriage inwards is added to the amount of Purchases Carriage inwards is deducted in amount of Sales Carriage inwards is deducted in the amount of Purchases 17 57 How is ‘Carriage Outwards’ treated in final accounts? Carriage outwards is added into expense column Carriage outwards is added to the amount of Purchases Carriage outwards is deducted in amount of Sales Carriage outwards is deducted in the amount of Purchases 58 In the accounting equation, The two sides will always be equal to one another The two sides will never be equal to one another Total of assets is always bigger than total of capital and liabilities Total of assets is always smaller than total of capital and liabilities 59 In the following transaction: ‘The owner puts a further amount into the business by cheque’, which account is debited and which account is credited? debit bank account & credit capital account debit bank account & credit the owner’s account debit the owner’s account & credit bank account debit the owner’s account & credit capital account 60 In the transaction ‘wages of £40 are paid in cash’, which entries are correct? Cr wages account £40 & Cr Cash account £40 Cr wages account £40 & Dr Cash account £40 Dr wages account £40 & Cr Cash account £40 Dr wages account £40 & Dr Cash account £40 61 In the transaction below: ‘You owed A John, a creditor for the goods bought from him & you paid your debt within required time; hence A John gave you cash discount’ What kind of discount is it? Cash discount discount allowed discount received Trade discount 62 In the transaction, ‘Goods sold for £210 on credit to T Smith’, which entries are correct? Dr Bank £210 & Cr Sales £210 Dr Sales £210 & Cr Bank £210 18 Dr Sales £210 & Cr T Smith £210 Dr T Smith £210 & Cr Sales £210 63 In the transaction: ‘Cash sale £1,410, in which £410 was received in cash’ What entries in the Cash book are done? Cr Cash £410 & Cr Bank £1,000 Dr Cash £1,410 Dr Cash £410 Dr Cash £410 & Dr Bank £1,000 64 In the transaction: ‘Paid £442 in cash to A Dobbs in settlement of a debt of £450’ What entries in the Cash book are done? Cr Cash £442 Cr Discount allowed £8 & Cr Cash £442 Cr Discount received £8 & Cr Cash £442 Dr Cash £442 65 In the transaction: ‘Received a cheque of £1,200 from A Smart in full settlement of debt of £1,212’ What entries in the Cash book are done? Cr Discount received £12 & Dr Bank £1,200 Dr Bank £1,200 Dr Discount allowed £12 & Dr Bank £1,200 Dr Discount allowed £12 & Dr Bank £1,212 66 In the transaction: ‘Withdrew £420 from bank to make cash in office’ What entries in the Cash book are done?Nếu vụ án không thuộc thẩm quyền Tịa án phải trả hồ sơ cho Viện kiểm sát Cr Bank £420 & Cr Cash £420 Cr Bank £420 & Dr Cash £420 Dr Bank £420 & Cr Cash £420 Dr Bank £420 & Dr Cash £420 67 The account ‘Bank’ has transactions during July, Year 4, including debit entries with £2,000 and credit entries with £170 and £240 How much is the balance of this account at the end of July, Year 4? £1,590 Cr £1,590 Dr £1,690 Cr £1,690 Dr 19 68 The account ‘Bank’ has transactions during July, Year 4, including debit entries with £5,000 and credit entries with £170 and £240 How much is the balance of this account at the end of July, Year 4? £1,590 Dr £1,590 Cr £1,690 Cr £1,690 Dr 69 The account ‘T Dove’ has transactions during May, Year 4, including debit entries with £150 & £80 and credit entries with £170 and £35 How much is the balance of this account at the end of May, Year 4? £25 Cr £25 Dr £35 Cr £35 Dr 70 The account ‘T Smith’ has transactions during July, Year 4, including debit entries with £50 & £80 and credit entries with £170 and £230 How much is the balance of this account at the end of July, Year 4? £170 Cr £170 Dr £270 Cr £270 Dr 71 The capital equation is: Assets less liabilities equals capital Assets equals capital and liabilities Capital equals assets less liablities Liabilities equals assets less capital 72 The following detail appears in the Purchases Day Book: ‘T Smith56/637£656’To what accounts & Ledgers will this detail be transferred? T Smith a/c in Purchases Ledger; Purchases a/c in General Ledger T Smith a/c and Purchases a/c in General Ledger T Smith a/c and Purchases a/c in Purchases Ledger T Smith a/c in General Ledger; Purchases a/c in Purchases Ledger 73 The formula for Cost of goods sold is: Opening stock+Purchases+Carriage inwards-Returns outwards-Closing stock 20