6 questions from this module, in a new order. No marks, but today counts.
1Money is paid into the bakery's bank account. Bank is an asset. Which side of the Bank account goes up?
Every account has two sides. Debit is the left side. Credit is the right side.
Which side makes an account go up depends on what kind of account it is.
To make an account go down, post to the opposite side.
2The bakery's new helper sorted these items. One line is wrong. Tap it.
A liability is money the business owes to someone else, such as a bank loan or an unpaid supplier bill.
Capital is what the business owes its owner: the money the owner put in, plus any profit left in the business.
Both answer the same question: where did the money come from?
Tap the line that is wrong.
3Would the trial balance still agree after each of these mistakes?
An agreed trial balance proves that the debits equal the credits.
It does not prove the books are right. A posting to the wrong account still balances.
Tap an item, then tap its box.
4The bakery's helper listed five balances in the trial balance. One is in the wrong column. Tap it.
A trial balance lists every account balance in two columns: debit and credit.
5Trade payables has credits of £800 and £120, and one debit of £500. What is the balance?
Liabilities, capital and income normally have a credit balance.
A credit balance on Trade payables is money the business still owes its suppliers.
6A Bank account has debits of £1,200 and £450, and one credit of £240. The balance c/d of £1,410 is added to the credit side. What does each side now total?
The balance is written on the smaller side as balance c/d (carried down). Both sides then add up to the same total.
It is then brought down (b/d) on the opposite side, to start the next period.