Chapter 3 - Accounting Systems Test

1. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 3 – ACCOUNTING SYSTEMS
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 1
Chapter 3 Test – Accounting Systems
Name ___________________________________________
Circle the correct response for each question:
1. (a) (b) (c) (d)
2. (a) (b) (c) (d)
3. (a) (b) (c) (d)
4. (a) (b) (c) (d)
5. (a) (b) (c) (d)
6. (a) (b) (c) (d)
7. (a) (b) (c) (d)
8. (a) (b) (c) (d)
9. (a) (b) (c) (d)
10. (a) (b) (c) (d)
11. (a) (b) (c) (d)
12. (a) (b) (c) (d)
13. (a) (b) (c) (d)
14. (a) (b) (c) (d)
15. (a) (b) (c) (d)
16. (a) (b) (c) (d)
17. (a) (b) (c) (d)
18. (a) (b) (c) (d)
19. (a) (b) (c) (d)
20. (a) (b) (c) (d)
21. (a) (b) (c) (d)
22. (a) (b) (c) (d)
23. (a) (b) (c) (d)
24. (a) (b) (c) (d)
25. (a) (b) (c) (d)
Total /25 marks

2. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 3 – ACCOUNTING SYSTEMS
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 2
Chapter 3 Test – Accounting Systems
1. The source documents of the firm:
a) Are created every time the business engages in a transaction
b) Provide evidence of the activities and transactions of the firm.
c) They help fulfil the qualitative characteristic of Reliability
d) All of the above
2. A small business charged a customer for a credit sale. Which document is created by this
transaction and will the business have the original or a copy of that document?
Source document Original or copy
a) Sales invoice Original
b) Purchase invoice Original
c) Sales invoice Copy
d) Purchase invoice Copy
3. A small business had a customer pay them for goods sold. Which document is created by this
transaction and will the business have the original or a copy of that document?
Source document Original or copy
a) Receipt Copy
b) Receipt Original
c) Cheque butt Original
d) Cheque butt Copy
4. A small business purchased stock on account from a supplier. Which document is created by
this transaction and will the business have the original or a copy of that document?
Source document Original or copy
a) Purchase invoice Original
b) Purchase invoice Copy
c) Cheque butt Original
d) Cheque butt Copy

3. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 3 – ACCOUNTING SYSTEMS
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 3
A business received the following source document.
Robert’s Radio Shack NO. 172
17 Miller Avenue
Camberwell 3124
Received from: R. Graham
The amount of: Eighty dollars, no cents $ 80.00
For: Payment of account
Date: 26/3/2015 Signed: R. Alexander
5. The name of this source document issued by Robert’s Radio Shack is:
a) Cheque butt
b) Sales invoice
c) Cash receipt
d) Statement of account
6. The effect of this document on the Accounting Equation of Robert’s Radio Shack will be:
Assets Liabilities Owner’s Equity
a)  80 0  80
b) 0 0 0
c)  80  80 0
d)  80  80 0
The manager of Bob’s Building Supplies had the following document in his possession.
Larry’s Lumberyard Inv. LL192
ABN 93 182 383 086
20 Smith Street
Camberwell 3124 Date: 12/9/2015
To: Bob’s Building Supplies
1 Victoria Parade
Melbourne 3000
Item Qty Price Subtotal
4” x 2” timber 50 100.00 5,000.00
Subtotal 5,000.00
GST 10% 500.00
Total owing 5,500.00
Terms: 5/14, n60

4. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 3 – ACCOUNTING SYSTEMS
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 4
7. The name of this source document is:
a) Purchase invoice
b) Sales invoice
c) Cash receipt
d) Memo
8. The terms of the credit purchase for Bob’s Building Supplies are:
a) A 5% discount is received if the invoice is paid within 14 days
b) The firm has 60 days to pay
c) A 5% discount is received if the invoice is paid within 14 days and the firm has 60 days to pay
d) A 5% discount is received if the invoice is paid within 60 days
9. The GST implications of this transaction for each firm are:
Larry’s Lumberyard Bob’s Building Supplies
a)  GST Liability 500  GST Liability 500
b)  GST Liability 500  GST Liability 500
c)  GST Liability 500  GST Liability 500
d) GST Liability 500  GST Liability 500
10. The two‐fold effect on the Balance Sheet of Bob’s Building Supplies as a result of this
transaction is:
Assets Liabilities Owner’s Equity
a)  5000  5500 0
b)  5000  5000 0
c)  5000  500  5000
d) 0 0 0

5. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 3 – ACCOUNTING SYSTEMS
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 5
The following document relates to a transaction between two businesses.
Phunky Phones ABN 47 352 493 390 NO. 1902
100 Flinders Street
Melbourne 3000 TAX INVOICE Date: 16/4/2015
ACCOUNT NAME: Cheap Chocolates
89 Albert Street
Balwyn 3103
GOODS PROVIDED:
Qty Description Cost Subtotal GST Total
5 iPhones $500.00 $2,500.00 $250.00 $2,750.00
5 iPhone car kits $70.00 $350.00 $35.00 $385.00
1 Carry bag $50.00 $50.00 $5.00 $55.00
TOTAL OF THIS INVOICE (excl. GST) $2,900.00
GST $290.00
TOTAL OF THIS INVOICE (incl. GST) $3,190.00
ALL ACCOUNTS ARE PROVIDED ON TERMS 5/14, n30
11. The document type and which version of the source document each business has is:
Phunky Phones Cheap Chocolates
Source document Version Source document Version
a) Sales invoice Original Purchase invoice Copy
b) Purchase invoice Original Sales invoice Copy
c) Purchase invoice Copy Sales invoice Original
d) Sales invoice Copy Purchase invoice Original
12. Assuming the cost of the sale was $1,400, the effect of this transaction on the Balance Sheet of
Phunky Phones is:
Assets Liabilities Owner’s Equity
a) 3190 290 2900
b) 1790 290 1500
c) 2900 290 3190
d) 2900 2900 0
13. The effect of this transaction on the Balance Sheet of Cheap Chocolates is:
Assets Liabilities Owner’s Equity
a) 1790 290 1500
b) 3190 290 2900
c) 2900 2900 0
d) 2900 290 3190

6. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 3 – ACCOUNTING SYSTEMS
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 6
14. If this invoice is paid by Cheap Chocolates on April 27th
2015, the amount paid will be:
a) $3,190.00
b) $2,755.00
c) $2,900.00
d) $3,030.50
The proprietor of Janie’s Jeans Shop provided their accountant with the following document.
Janie’s Jeans Shop Date: 23/7/2015
OFFICE MEMO: One pair of Levi’s jeans: Cost $100
One pair of Lee jeans: Cost $120
(Sister’s birthday)
MEMO No. 101 Signed: Janie Johnson
15. For Janie’s Jeans Shop, the above transaction represents:
a) Drawings
b) Revenue
c) Expense
d) Asset
16. The two‐fold effect of this transaction on the Balance Sheet of Janie’s Jeans Shop is:
Assets Liabilities Owner’s Equity
a) 242 0 242
b) 220 0 220
c) 220 0 220
d) 220 220 0
17. A statement of account is issued by a business to its:
a) Credit suppliers
b) Credit customers
c) Bank
d) Creditors
18. Which of the following details would not appear on a statement of account?
a) The opening and closing balance of the account at the beginning and end of the month
b) Purchases made on credit during the month
c) Drawings made by the owner for personal use
d) Payments made off the account during the month

7. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 3 – ACCOUNTING SYSTEMS
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 7
The following document was found in the office of Wholesale Cycles.
Wholesale Cycles ABN 43 586 204 395
999 SMITH STREET
MORNINGTON 3931 DATE: 30 June 2015
STATEMENT FOR: Stephen’s Scooters
231 Albert Street
Warragul 3820
DATE DETAILS DR $ CR $ BAL $
JUN 1 BALANCE 700
JUN 8 PAYMENT – THANK YOU 550 150
JUN 15 INVOICE 749 1100 1250
JUN 25 INVOICE 812 1650 2900
JUN 29 PAYMENT – THANK YOU 1000 1900
19. The name of this source document is:
a) Statement of account
b) Sales invoice
c) Cash receipt
d) Purchase invoice
20. In the Balance Sheet of Wholesale Cycles, Stephen’s Scooters would appear as an item under
which heading?
a) Non‐Current Assets
b) Current Liabilities
c) Current Assets
d) Non‐Current Liabilities
21. The transaction between the entities on June 8 will have the following two‐fold effect on the
Balance Sheet of Stephen’s Scooters:
Assets Liabilities Owner’s Equity
a) 550 550 0
b) 550 50 500
c) 550 550 0
d) 0 0 0

8. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 3 – ACCOUNTING SYSTEMS
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 8
The following document was found in the offices of Hughes’ Hi‐Fi.
Hughes’ Hi‐Fi NO. 101
1 MAIN ROAD
PORT MELBOURNE 3008 DATE: 23 April 2015
SUPPLIER: Technology Traders
17 Alexander Parade
Fairfield 3078
PLEASE SUPPLY THE FOLLOWING:
Quantity Description
10 Speakers
20 Powerboards
22. The name of this source document is:
a) Quote
b) Sales invoice
c) Purchase invoice
d) Order
23. The firm that issued this document and the version they have is:
Issuer Version
a) Hughes’ Hi‐Fi Original
b) Technology Traders Copy
c) Technology Traders Original
d) Hughes’ Hi‐Fi Copy

9. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 3 – ACCOUNTING SYSTEMS
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 9
The following document was found by the owner of Phil’s Paperworks.
Date 3/3/2015
Payee Red Energy
(electricity
for Feb + GST)
Fwd $
Chq $ 440-00
Bal. $
Chq 292
24. The name of this source document is:
a) Cheque
b) Cheque butt
c) Purchase invoice
d) Memo
25. The two‐fold effect of this transaction on the Balance Sheet of Phil’s Paperworks will be:
Assets Liabilities Owner’s Equity
a) 440 440 0
b) 440 0 440
c) 440 40 400
d) 400 40 440