Basic Accounting Concepts Questions and Answers | Accounting Grade 12
Activity 1: Matching items
Choose a definition from COLUMN B that matches the type of account in COLUMN A.
Draw a line from COLUMN A to COLUMN B to match the definitions.
| Column AÂ | Column BÂ |
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Answers to activity 1
| Column AÂ | Column BÂ |
| D G C F A B E |
Activity 2: Multiple-choice questions
Three options are provided as possible answers to the following questions.
Circle the correct answer.
| 1. Bank overdraft is classified as a… | 2. Consumable stores on hand is classified as… |
|  A Non-current liability |  A Owner’s equity |
| Â B Current asset | Â B Current asset |
| Â C Current liability | Â C An expense |
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Answers to activity 2
| Â 1 | C | This is a current liability because it will be paid back within 1 year (short-term). |
| Â 2 | B | This is a current asset because the business will use them within the next 12 months. |
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Activity 3: Accounting equation
Refer to Steps to recording transactions 1–4 above.
Record the transactions in the Table below assuming bank is favourable (Dr) at all times.
(When a bank is favourable it means it is an asset of the business and remains in a debit balance.)
- Wrote off a debtor’s account of R500 as a bad debt.
- Sent a cheque to a creditor to settle our account of R2 000.
- Received rent of R5 000 from a tenant.
- Bought trading stock on credit for R1 800.
- Bought equipment for R600 and paid by cheque.
Account debit Account credit A = O + L 1 Â 2 Â 3 Â 4 Â 5
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Answers to activity 3
| Account debit | Account credit | A = | O + | L | |
| 1 | Bad debts (expense increasing) | Debtors control (asset decreasing) | -500 | -500 | Â 0 |
| Â 2 | Â Creditors control (liability decreasing) | Bank (asset decreasing) | -2000 | 0 | -2000 |
| Â 3 | Bank (asset increasing) | Rent income (income increasing) | +5000 | +5000 | 0 |
| Â 4 | Trading stock (asset increasing) | Creditors control (liability increasing) | +1800 | 0 | +1800 |
|  5 | Equipment (asset increasing) | Bank (asset decreasing) | ±600 | 0 | 0 |