Month: April 2024

The credit side of a trial balance totals £400 more than the debit side.

Which of the following errors would fully account for the difference?

Select ONE answer:

1. £200 paid for coffee machine repairs has been correctly entered in the cash book and credited to the coffee machine account.
2. Discount received £200 has been debited to the discount allowed account.
3. A receipt of £400 for commission receivable has been omitted from the records.
4. The petty cash balance of £200 has been omitted from the trial balance.

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 payment should have been debited not credited so the credit side is too high by £400. In (2) discount received £200 has been debited when it should have been credited, so debits are £400 higher. (3) has no effect on the TB balancing. (4) means that credits are too high, but only by £200
2. Not correct
3. Not correct
4. Not correct

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Which of the following errors would result in a trial balance imbalance?

Select ONE answer:

1. The discounts allowed balance was listed as a credit on the trial balance
2. Drawings for the last month of the year had been posted to the sundry expenses account
3. A contra settlement had been recorded only in the sales and purchases ledgers
4. Capital expenditure had been posted to repairs

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 – For the other items, the trial balance will balance because: Drawings and sundry expenses are both debits (2), Both debits and credits suffer an omission in (3), capital expenditure and repairs are both debits (4).
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

On 1 December 2020 Alex Ltd’s payables control account had a balance of £3,200.

During the month the following transactions occurred:

• Payments to suppliers £2,500
• Cash purchases £800
• Purchases on credit £3,300
• Returns outwards of credit purchases £750

The control account balance as at 31 December 2020 is?

Select ONE answer:

1. £3,250
2. £3,300
3. £3,550
4. £4,000

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 – £3,200 + £3,300 – £2,500 – £750 = £3,250
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

When performing a reconciliation between the bank statement and the cash book, which TWO of the following would require an entry in the cash book?

A  Deposits credited after date

B  Direct debit on bank statement only

C  Bank charges

D  Bank error

E  Cheque presented after date

Select ONE answer:

1. A & B
2. B & C
3. C & D
4. D & E

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 2

1. Notcorrect
2. Correct  –  Cash book: direct debit on bank statement only (B), bank charges (C) ==> Deposits credited after date (A), bank error (D) and cheque presented after date (E) would appear on the bank reconciliation.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.