This document contains a 25 question multiple choice test on the perpetual inventory system. The test is from Chapter 9 of the VCE Accounting Unit 3 curriculum. It covers topics like identifying appropriate debit and credit entries for a stock control ledger, recording stock gains and losses, preparing stock cards, and analyzing inventory information to complete stock control ledgers. The document provides the full test questions and multiple choice answers. It is copyrighted material from Trinity Grammar School that requires the author's permission for external use.

1. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 9 – PERPETUAL INVENTORY SYSTEM
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 1
Chapter 9 Test – Perpetual Inventory System
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 9 – PERPETUAL INVENTORY SYSTEM
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 2
Chapter 9 Test – Perpetual Inventory System
1. Which of the following items would you expect to see on the Debit side of the Stock Control
ledger?
a) Purchasing of stock from suppliers
b) Sales of stock to customers
c) Stock losses through theft and damage
d) Withdrawals of stock by the owner
2. Which of the following items would you not expect to see on the Credit side of the Stock
Control ledger?
a) Stock loss
b) Stock is sold to customers
c) Stock is contributed to the business by the owner
d) Stock is donated for advertising purposes
3. Shown below are some of the column totals in the Special Journals of a business for June :
Cash Receipts Journal
Debtors $3,300
Cost of sales $2,940
Sales $4,800
GST $480
Credit Purchases
Journal
Stock control
$5,700
GST $570
Credit Sales Journal
Cost of sales $560
Sales $2,450
GST $245
Cash Payments Journal
Creditors $3,930
Stock $2,100
GST $370
Drawings $200
At the beginning of June the firm had a balance of $54,200 in its Stock Control account. Based
on this information, the firm’s Stock Control ledger will look like:
a)
Stock control [A]
1 Jun Balance 54200 30 Jun Cost of sales 2940
30 Jun Cash at bank 2100 30 Jun Cost of sales 560
30 Jun Creditors control 5700 30 Jun Drawings 200
30 Jun Balance 58300
62000 62000
1 Jul Balance 58300
b)
Stock control [A]
1 Jun Balance 54200 30 Jun Cost of sales 2940
30 Jun Cash at bank 2100 30 Jun Cost of sales 560
30 Jun Creditors control 5700 30 Jun Balance 58500
62000 62000
1 Jul Balance 58500

3. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 9 – PERPETUAL INVENTORY SYSTEM
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 3
c)
Stock control [A]
1 Jun Balance 54200 30 Jun Cash at bank 2940
30 Jun Cash at bank 2100 30 Jun Debtors control 560
30 Jun Creditors control 5700 30 Jun Balance 58500
62000 62000
1 Jul Balance 58500
d)
Stock control [A]
1 Jun Balance 54200 30 Jun Cash at bank 2100
30 Jun Cost of sales 2940 30 Jun Creditors control 5700
30 Jun Cost of sales 560 30 Jun Balance 49900
57700 57700
1 Jul Balance 49900
4. In a Stock Card, a stock gain would be entered in the:
a) Debit side
b) IN column
c) Credit side
d) OUT column
5. In a Stock Card, the donation of stock would be entered in the:
a) OUT column
b) Credit side
c) Debit side
d) IN column
6. In the perpetual inventory system, a physical stocktake is conducted so:
a) The firm can compare it with the Stock Cards to identify any stock gains and losses
b) Apply FIFO to its inventory
c) Eliminate wastage in inventory management
d) The firm can discover the value of its Stock Control ledger account
7. Which of the following is not a possible reason for a stock loss?
a) Undersupply by suppliers
b) Undersupply to customers
c) Theft by staff and customers
d) Recording errors

4. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 9 – PERPETUAL INVENTORY SYSTEM
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 4
8. A customer at Rebel Sport purchased five pairs of sports socks. Due to a mix-up at the counter,
she only took home four pairs and left one pair behind in the store. The customer never
returned and the pair of socks was placed back on the shelf. This will result in a:
a) Stock gain
b) Stock loss
c) A recording error in the firm’s records
d) A staff member being given the socks as a reward
9. A delivery was made to the toy department at Kmart. The business ordered 53 Monopoly sets
but the delivery driver was in the middle of a busy day, got confused, and only dropped off 35
Monopoly sets. The staff member who signed for the delivery didn’t spot the error and it was
only picked up months later during the annual stocktake. This error will result in a:
a) Stock gain
b) A profit
c) An oversupply by the supplier
d) Stock loss
10. JB Hi-Fi was conducting its annual stocktake. During the stocktake, one of its casual employees
got distracted while counting the number of iPhones in stock. Instead of writing down that 30
iPhones were in stock, the employee wrote down that there were 32 on hand. This will result in:
a) A stock gain
b) A stock loss
c) The business needing to send two units of stock back to the supplier
d) All of the above
11. A business suffered a stock loss of $200. The double-entry to record this event would be:
Debit Credit
a) Stock loss $200 Stock $200
b) Stock control $200 Stock loss $200
c) Stock loss $200 Capital $200
d) Stock loss $200 Stock control $200
12. A business experienced a stock gain of $400. The double-entry to record this event would be:
Debit Credit
a) Stock $400 Stock gain $400
b) Stock control $400 Stock gain $400
c) Capital $400 Stock gain $400
d) Stock gain $400 Stock control $400

5. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 9 – PERPETUAL INVENTORY SYSTEM
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 5
13. A business has provided the following figures from 2015:
Total sales of stock for the period $73,200
GST on sales $7,320
Balance of Stock Control ledger at 31 Dec
Feb015
$14,500
Cost of sales for the period $48,210
Stock on hand according to a physical stocktake $14,200
The correct General Journal entry to record this information at the end of the period will be:
a)
General Journal
Date Particulars General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
31 Dec Stock loss 24990
Stock control 24990
b)
General Journal
Date Particulars General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
31 Dec Stock loss 300
Stock control 300
c)
General Journal
Date Particulars General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
31 Dec Stock control 300
Stock gain 300
d)
General Journal
Date Particulars General Ledger Subsidiary Ledger
Debit $ Credit $ Debit $ Credit $
31 Dec Stock loss 300
Stock gain 300

6. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 9 – PERPETUAL INVENTORY SYSTEM
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 6
14. A business provided the following information for July 2015:
Balance of Stock Control as at 1 July $13,300
Credit purchases of stock made during the month $34,950
GST on stock purchases $3,495
Total sales for the month - Selling price $65,400
- Cost price $33,100
GST on sales $6,540
Total of physical stocktake on 31 July $16,100
Capital contribution of stock by the owner $400
Based on this information, the firm’s Stock Control ledger will look like:
a)
Stock control [A]
1 Jul Balance 13300 31 Jul Cost of sales 33100
31 Jul Creditors control 34950 31 Jul Capital 400
31 Jul Stock gain 1350 31 Jul Balance 16100
49600 49600
1 Aug Balance 16100
b)
Stock control [A]
1 Jul Balance 13300 31 Jul Cost of sales 33100
31 Jul Creditors control 34950
31 Jul Stock gain 950 31 Jul Balance 16100
49200 49200
1 Aug Balance 16100
c)
Stock control [A]
1 Jul Balance 13300 31 Jul Creditors control 34950
31 Jul Cost of sales 33100
31 Jul Capital 400
31 Jul Stock gain 4250
51050 51050
d)
Stock control [A]
1 Jul Balance 13300 31 Jul Cost of sales 33100
31 Jul Creditors control 34950
31 Jul Capital 400
31 Jul Stock gain 550 31 Jul Balance 16100
49200 49200
1 Aug Balance 16100

7. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 9 – PERPETUAL INVENTORY SYSTEM
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 7
15. The information below was provided by the owner of a business using the perpetual inventory
system for November 2015:
Balance of Stock Control as at 1 Nov $17,400 Total cash sales for Nov - Selling price $68,000
Total of physical stocktake on 30 Nov $19,400 - GST collected $6,800
Credit purchases of stock during Nov $30,100 - Cost price $34,100
GST on credit purchases $3,010 Credit sales for Nov - Selling price $16,400
Cash purchases of stock during Nov $12,600 - GST charged $1,640
GST on cash purchases $1,260 - Cost price $8,300
Based on this information, the firm’s Stock Control ledger will look like:
a)
Stock control [A]
1 Nov Balance 19400 30 Nov Cost of sales 34100
30 Nov Creditors control 30100 30 Nov Cost of sales 8300
30 Nov Cash at bank 12600 30 Nov Balance 17400
30 Nov Stock gain 1700
63800 63800
1 Dec Balance 17400
b)
Stock control [A]
1 Nov Balance 17400 30 Nov Cost of sales 34100
30 Nov Creditors control 12600 30 Nov Cost of sales 8300
30 Nov Cash at bank 30100 30 Nov Balance 19400
30 Nov Stock gain 1700
61800 61800
1 Dec Balance 19400
c)
Stock control [A]
1 Nov Balance 17400 30 Nov Cost of sales 34100
30 Nov Creditors control 30100 30 Nov Cost of sales 8300
30 Nov Cash at bank 12600 30 Nov Balance 19400
30 Nov Stock gain 1700
61800 61800
1 Dec Balance 19400
d)
Stock control [A]
1 Nov Balance 17400 30 Nov Cost of sales 34100
30 Nov Creditors control 30100 30 Nov Cost of sales 8300
30 Nov Cash at bank 12600 30 Nov Balance 19400
30 Nov Stock loss 1700
61800 61800
1 Dec Balance 19400

8. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 9 – PERPETUAL INVENTORY SYSTEM
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 8
16. At the beginning of January 2015, a firm had 5 units of inventory valued at $85 each. On 3
January the business bought another 8 units at a cost of $88 inclusive of GST. The firm’s Stock
Card will look like:
a)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
1 Jan Balance 5 85 425
3 Jan Inv. A707 8 80 640 5 85
8 80 1065
b)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
1 Jan Balance 5 85 425
3 Jan Inv. A707 8 80 640 5 85
8 80 1065
c)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
1 Jan Balance 5 85 425
3 Jan Inv. A707 8 88 704 5 85
8 88 1129
d)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
1 Jan Balance 5 85 425
3 Jan Inv. A707 8 80 640 8 80
5 85 1065

9. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 9 – PERPETUAL INVENTORY SYSTEM
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 9
17. A business had the following Stock Card on 1 May 2015.
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
1 May Balance 1 15
5 16
20 14 375
On 2 May 2015 the firm sold 7 units. Its Stock Card will look like:
a)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
1 May Balance 1 15
5 16
20 14 375
2 May Rec. 921 1 15
5 16
1 14 109 19 14 266
b)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
1 May Balance 1 15
5 16
20 14 375
2 May Rec. 921 1 15
5 16
1 14 109 19 14 266
c)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
1 May Balance 1 15
5 16
20 14 375
2 May Rec. 921 7 14 98 1 15
5 16
13 14 277
d)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
1 May Balance 1 15
5 16
20 14 375
2 May Rec. 921 1 15
5 16
1 14 105 19 14 266

10. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 9 – PERPETUAL INVENTORY SYSTEM
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 10
18. A business had the following Stock Card on 1 September 2015.
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
1 Sep Balance 3 40
20 50 1120
On 2 September the firm donated 1 unit to a local charity. Its Stock Card will look like:
a)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
1 Sep Balance 3 40
20 50 1120
2 Sep Memo 1 1 40 40 2 40
20 50 1080
b)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
1 Sep Balance 3 40
20 50 1120
2 Sep Memo 1 1 50 50 3 40
19 50 1070
c)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
1 Sep Balance 3 40
20 50 1120
2 Sep Memo 1 1 40 40 2 40
20 50 1080
d)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
1 Sep Balance 3 40
20 50 1120
2 Sep Memo 1 1 40 40 2 40
20 50 1040

11. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 9 – PERPETUAL INVENTORY SYSTEM
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 11
19. A business had the following Stock Card in June 2015:
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
30 Jun Balance 2 55
8 50 510
According to the Stock Card, how many units should be on hand at 30 June 2015?
a) 2
b) 8
c) 10
d) 6
20. This question relates to the Stock Card in the previous question. If a stocktake on 30 June
revealed that 9 units were on hand, the firm’s Stock Card would look like:
a)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
30 Jun Balance 2 55
8 50 510
30 Jun Memo 1 1 55 55 1 55
8 50 455
b)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
30 Jun Balance 2 55
8 50 510
30 Jun Memo 1 1 55 55 1 55
8 50 455
c)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
30 Jun Balance 2 55
8 50 510
30 Jun Memo 1 1 50 50 2 55
7 50 460
d)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
30 Jun Balance 2 55
8 50 510
30 Jun Memo 1 1 55 55 1 55
8 50 450

12. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 9 – PERPETUAL INVENTORY SYSTEM
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 12
21. A business had the following Stock Card in March 2015:
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
31 Mar Balance 6 10
10 9 150
If a stocktake on 31 March revealed that 18 units were on hand, the firm’s Stock Card would
look like:
a)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
31 Mar Balance 6 10
10 9 150
31 Mar Memo 1 2 10 20 8 10
10 9 170
b)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
31 Mar Balance 6 10
10 9 150
31 Mar Memo 1 2 9 18 6 10
12 9 168
c)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
31 Mar Balance 6 10
10 9 150
31 Mar Memo 1 2 9 18 6 10
12 9 166
d)
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
31 Mar Balance 6 10
10 9 150
31 Mar Memo 1 2 9 18 6 10
12 9 168

13. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 9 – PERPETUAL INVENTORY SYSTEM
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 13
22. A business had the following Stock Card in August 2015:
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
31 Aug Balance 5 110
12 100 1750
A stocktake revealed that 15 units were on hand. The firm then recorded a stock loss of $200.
Based on this calculation, the firm’s profit will be:
a) $20 too low
b) Correct
c) $20 too high
d) $200 too low
23. A business had the following Stock Card in October 2015:
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
31 Oct Balance 25 3
40 4 235
A stocktake revealed that 71 units were on hand at the end of October. A stock gain of $18 was
recorded by the business. Based on this calculation, the firm’s profit will be:
a) Correct
b) $18 too high
c) $6 too low
d) $18 too low
24. A business had the following Stock Card in February 2015:
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
28 Feb Balance 10 30
30 26 1080
A stocktake revealed that 42 units were on hand. A stock gain of $60 was recorded by the
business. Based on this calculation, the firm’s profit will be:
a) $52 too high
b) $8 too high
c) $8 too low
d) Correct

14. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 9 – PERPETUAL INVENTORY SYSTEM
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 14
25. A business had the following Stock Card in April 2015:
Stock item: IN OUT BALANCE
Date Reference Qty Cost Value Qty Cost Value Qty Cost Value
30 Apr Balance 12 11
13 12 288
A stocktake revealed that 24 units were on hand. A stock gain of $12 was recorded by the
business. Based on this calculation, the firm’s profit will be:
a) $1 too high
b) $1 too low
c) $23 too high
d) $24 too high