Day: February 24, 2020

At 31 May, according to John Smith’s creditors’ ledger, he owed Alpha Ltd, one of his suppliers, £1,518.

The balance shown on the statement he received from Alpha Ltd did not agree with this. A purchase by John Smith from Alpha Ltd of goods costing £520 was recorded on Alpha’s statement but not in John Smith’s ledger.

A cheque for £250 paid to Alpha Ltd was correctly recorded in John Smith’s ledger but was not shown on the statement from Alpha Ltd.

The balance on the statement from Alpha Ltd was?

Select ONE answer:

1. £748
2. £1,248
3. £1,788
4. £2,288

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not Correct
3. Correct
   Balance per John Smith’s ledger £1,518
   Invoice not yet recorded in the ledger £520
   The amount owed by John Smith to Alpha Ltd £2,038
   Cheque paid to Alpha Ltd. not yet recorded by Alpha Ltd -£250
   The balance shown on the statement from Alpha Ltd £1,788
4. Not correct

 

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