Unit Four: Debit And Credit Theory
Assignment 3
Group Members:
and
Date:
Value 40
Complete the following assignment by clicking and recording answers in the appropriate
boxes. Save the document in your folder as U4A3.
Question I
Value 7
1. Define the following:
a. Exceptional balance—
b. On account—
2. What information does an account contain?
3. Provide an example of an account with a normal debit balance and provide an
example of a transaction that would cause a debit entry to a debtor?
Account with a normal debit balance:
Debit Entry:
4. Provide an example that result in an exceptional balance.
Question II
Value 12
Examine the following ledger accounts. Following the proper steps balance the accounts
by click through the exercise recording the sum of the debit and credit sides. Then record
the ending balance on the correct side.
Bank
2 000
400
100
300
Balance
150
25
120
100
A/R J. Wilson
300
50
100
270
80
A/P Wacox Co.
100
450
250
100
L. McHugh, Capital
175
4 560
400
Question III
Value 6
The following accounts have exceptional balances. For each account explain:
a. A possible cause for the exceptional balance.
Bank
300
Reason:
A/R E. Kane
100
Reason:
A/P Wyler Ltd.
50
Reason:
Question IV
Value 15
Read each of the following phrases. From the drop-down field indicate by selecting if the
phrase is best represented by the word “debit or by the word “credit.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Debit
Debit
Debit
Debit
Debit
Debit
Debit
Debit
Debit
Debit
Debit
Debit
Debit
Debit
Debit
The balance of the office furniture account.
The left side of an account.
The balance of Accounts Receivable.
A decrease in an asset.
An increase in a liability.
The right side of an account
The effect on account payable when purchasing on account.
The effect on account payable when payment is made on account.
The effect on account receivable when a sale is made on account.
The effect on account receivable when a payment on account is received.
An exceptional balance in the Bank account.
A debtor’s account.
An exceptional balance in accounts receivable.
A creditor’s account.
An increase to Capital.