Month: May 2024

A company’s bank statement shows an overdraft of £3,204 at 31 March 2024.

The statement includes bank charges of £46 which have not yet been recorded in the company’s cash book.

The statement does not include cheques for £780 paid to suppliers, nor an amount of £370, received from a credit customer; both of these amounts appear in the bank statement for April 2024.

If the company prepares a statement of financial position at 31 March 2024, the figure for the bank overdraft should be?

Select ONE answer:

1. £2,794
2. £3,568
3. £3,614
4. £3,660

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 –  (£3,204 + 780- 370). The bank charges of £46 have already been charged by the bank, and no further adjustment is required in relation to them.
4. Not correct

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An error of commission is one where?

Select ONE answer:

1. Transaction has not been recorded
2. One side of a transaction has been recorded in the wrong account, and that account is of a different class to the correct account
3. One side of a transaction has been recorded in the wrong account, and that account is of the same class as the correct account
4. A transaction has been recorded using the wrong amount

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 – A transaction has been posted to the wrong account, but not the wrong class of account.
4. Not correct

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The following bank reconciliation statement has been partially completed for a company:

Overdraft per bank statement  £39,800

Deposits credited after date  £64,100

Outstanding cheques presented after date  £44,200

The credit balance in the cash book should be?

Select ONE answer:

1. £148,100
2. £19,900
3. £68,500
4. £59,700

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 –> (£39,800) + £64,100 – £44,200 = £19,900
3. Not correct
4. Not correct

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The following payables control account contains some errors.

All goods are purchased on credit.

PAYABLES CONTROL ACCOUNT

DR Purchases 945,800
DR Discounts received 12,600
DR Contras with receivables ledger 4,200
DR Closing balance 410,400
DR Total 1,373,000

CR Opening balance 384,600
CR Cash paid to suppliers 988,400
CR Total 1,373,000

What should the closing balance be when the errors have been corrected?

Select ONE answer:

1. £325,200
2. £350,400
3. £333,600
4. £410,400

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 –> 384,600 + 945,800 – 988,400 – 12,600 – 4,200 = £325,200
2. Not correct
3. Not correct
4. Not correct

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

A suspense account was opened by Alex when a trial balance failed to agree.

The following errors were later discovered.

1  A gas bill of £420 had been recorded in the power expense account as £240

2  A discount of £50 given to a customer had been credited to discounts received

3  Interest received of £70 had been entered in the bank account only

The original balance on the suspense account when it was opened was?

Select ONE answer:

1. Debit £210
2. Credit £210
3. Debit £160
4. Credit £160

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 –> DR Gas Bill (£420 – £240) £180 DR Discount (£50 * 2) £100 DR TOTAL £280 CR Interest Receivable £70 CR Balance B/D £210 TOTAL £280
2. Not correct
3. Not correct
4. Not correct

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