Accounting Multiple Choice Question – 17 March 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Accounting

The balance of £37,564 in a firm’s purchases ledger control recount did not agree with the total of the creditors’ balances listed as at the same date.

Upon investigation, the following errors were discovered:

  • A refund of £140 received from a credit supplier because of an overpayment had been posted to the wrong side of the control account.
  • Returns outwards of £310 had also been posted to the wrong side of the control account.
  • The list of balances had been undercast by £200.
  • Discounts received of £276 were not recorded in the control account.

The correct credit balance on the purchases ledger control recount is?

Select ONE answer:

  1. £30,030
  2. £39,060
  3. £39,150
  4. £39,210

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 1

  1. Correct – The undercasting of the list of balances does not affect the control account. £37,564 + (£140 x 2) – (£310 x 2) – £276 = £36,948
  2. Not correct
  3. Not correct
  4. Not correct

 

 

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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