Source Documents, Slips, and Choosing Subsidiary Books

The correct answer is "Dr Purchases 80,000, Provisional consumption tax paid 8,000 / Cr Accounts payable 88,000". Goods for resale bought on credit are Purchases and Accounts payable, and the buyer records the tax as provisional consumption tax paid. The option with Purchases of 88,000 includes the tax in Purchases, which the tax-exclusive method does not. The option that credits Other payables is wrong, because that account is for non-merchandise items such as equipment. The option that uses provisional consumption tax received is wrong, because that account is for the seller.

The correct answer is "Dr Supplies expense 5,000, Provisional consumption tax paid 500 / Cr Cash 5,500". Copy paper is used up in office work, so it is Supplies expense, and a receipt shows it was paid in cash at the time. The option with Supplies expense of 5,500 includes the tax in the expense. The option that debits Equipment is wrong, because that account is for long-lived items such as desks or computers. The option that credits Other payables means the amount is still unpaid and does not fit a receipt.

The correct answer is "Dr Ordinary deposit 220,000 / Cr Accounts receivable 220,000". A customer paid its receivable by bank transfer, so the ordinary deposit increases (debit) and accounts receivable decreases (credit). The option that credits Sales records sales again, although sales were already recorded when the goods were sold. The option "Dr Accounts receivable / Cr Ordinary deposit" reverses debit and credit. The option that debits Checking account is wrong, because the money went into the ordinary deposit account.

The correct answer is "Dr Purchases 100,000 / Cr Accounts payable 100,000". Because the payment slip shows Accounts payable, the method treats the whole purchase as on credit first. The option "Purchases 70,000 / Accounts payable 70,000" is the transfer slip for the "split the transaction" method, where the payment slip would show Purchases 30,000. The option that credits Cash involves cash, which is never written on a transfer slip. The option "Dr Accounts payable / Cr Purchases" reverses debit and credit.

The correct answer is "Cash increased by 40,000 and accounts receivable decreased by 40,000". On a receipt slip the debit is always Cash, so only the credit account is written. The slip means Dr Cash 40,000 / Cr Accounts receivable 40,000: a receivable collected in cash. The option saying receivables increased and cash decreased reverses the sides. The option about a credit sale involves no cash, so it goes on a transfer slip. The option about a payment into the ordinary deposit increases the deposit, not cash, so it also goes on a transfer slip.

The correct answer is "One transfer slip". The entry is Dr Accounts receivable 60,000 / Cr Sales 60,000; no cash moves, so one transfer slip is used. A receipt slip is for cash coming in. A payment slip is for cash going out. The option with two slips (a receipt slip and a transfer slip) is for partly-cash transactions, such as when part of the price is received in cash.

The correct answer is "¥122,000". Debits: Cash 42,000 (total of receipt slips), Accounts receivable 50,000, Purchases 28,000 (8,000 + 20,000), Supplies expense 2,000, total 122,000. Credits also total 122,000 (Sales 62,000, Accounts receivable 30,000, Cash 10,000, Accounts payable 20,000). "¥70,000" adds only the transfer slips; "¥52,000" adds only the receipt and payment slips; "¥244,000" adds the debit and credit totals together.

The correct answer is "Post account totals from the table to the general ledger, and post each slip to the accounts receivable ledger". Posting account totals saves work for the general ledger, while the accounts receivable ledger needs customer-level detail, so it is posted from each slip. The option that posts each slip to the general ledger reverses the sources for the two ledgers. The option saying the totals may not agree is wrong: every slip balances, so the table's totals always agree. The option saying the general ledger need not be kept is wrong: the table sits between the slips and the general ledger and does not replace the ledger.

The correct answer is "Cash book, purchases journal, inventory ledger, accounts payable ledger". The entry is Dr Purchases 50,000 / Cr Cash 20,000, Accounts payable 30,000. So the purchases journal, the inventory ledger (goods come in), the cash book (cash decreases) and the accounts payable ledger (amount owed to the supplier increases) are used. The option without the inventory ledger omits it. The option with the accounts receivable ledger omits the cash book and accounts payable ledger and adds that unrelated ledger. The option with the sales journal uses it instead of the purchases journal.

The correct answer is "Fixed asset register". The entry is Dr Equipment 300,000 / Cr Other payables (未払金) 300,000. Equipment is a fixed asset, so it goes in the fixed asset register; the Grade 3 syllabus has no subsidiary book for other payables. The option with the accounts payable ledger is wrong because that ledger is for amounts owed for merchandise. The option "Purchases journal and inventory ledger" is wrong because those books are for goods for resale. The option "Fixed asset register and purchases journal" is wrong for the same reason.