Accounting Multiple Choice Question – 17 March 2020

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 View all posts by stuart001uk2014