Month: April 2024

Alex plc has a reporting period for the year ended 31 December 2021.

At that date the balance on the receivables control account was £65,000, but the total of the individual accounts in the receivables ledger came to £63,620.

Upon investigation the following facts were discovered:

1  The sales day book total for week 49 had been overcast by £300.

2  A credit balance of £210 on Cabbage’s account in the receivables ledger had been incorrectly treated asa debit entry, when balancing off his account.

3  A payables ledger contra of £1,500 has been entered in Sprout’s account in the receivables ledger but no other entry had been made.

The correct balance on both the receivables ledger listing and the receivables control account is?

Select ONE answer:

1. £62,900
2. £63,200
3. £63,400
4. £66,800

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. Not correct
2. Correct – Note the correct balance on the receivables ledger listing is 63,620 – (210 x 2) = £63,200 ==> RECEIVABLES CONTROL ACCOUNT = Dr B/D £65,000 Cr SDB Overcast £300 + Contra £1,500 = C/D £63,200
3. Not correct
4. Not correct

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If a supplier’s credit note of £130 has been entered as an invoice in the purchases daybook, but has been correctly entered in the supplier’s payables ledger account, the totals of the debit column and the credit column on the subsequently extracted trial balance would?

Select ONE answer:

1. Agree
2. Show £260 more on the debit than the credit side
3. Show £260 more on the credit than the debit side
4. Be different by £130

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- In the trial balance, both purchases and payables would be overstated by £260, but the overall totals for the debit and credit columns would agree.
2. Not correct
3. Not correct
4. Not correct

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Two statements are made below:

A.  The owner’s drawings are shown on the trial balance.

B.  The closing inventory balance is included in the extended trial balance.

Which of these statements are True or False?

Select ONE answer:

1. A. True & B. False
2. A. False & B. False
3. A. True & B. True
4. A. False & B. True

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
4. Not correct

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

Two statements are made below:

A.  If the trial balance does not balance an error must have been made.

B.  Closing inventory balance is always included in the initial trial balance.

Which of these statements are True or False?

Select ONE answer:

1. A. True & B. False
2. A. False & B. False
3. A. True & B. True
4. A. False & B. True

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
2. Not correct
3. Not correct
4. Not correct

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