Author: stuart001uk2014

Which of the following errors, on its own, could account for the total of the balances in a firm’s debtors ledger being £800 more than the debit balance on its debtors control account?

Select ONE answer:

1. Discounts allowed totalling £800 have been omitted from the nominal (general) ledger but correctly accounted for in the debtors’ ledger.
2. One debtors’ ledger account with a credit balance of £800 has been treated as a debit balance when totalling the balances in the debtors’ ledger.
3. The total amount received from debtors, as shown in the cash book (or cash receipts book) is overstated by £800.
4. None of the above.

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 – Discounts allowed being omitted from the nominal (general) ledger but correctly accounted for in the debtors ledger would result in the balance on the debtors control account being greater than the total of the list of debtors balances.
2. Not correct – A credit balance on a debtors ledger account being treated as a debit balance would result in the balance on the debtors control account being greater than the total of the list of debtors balances.
3. Correct
4. Not correct

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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

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

A firm’s list of debtor balances. which totalled £39,150 did not agree with its debtors ledger control account.

Upon investigation, the following errors were discovered:

• A credit balance of £70 on one debtor’s account in the sales ledger had been listed as a debit balance.
• A debit balance of £40 on another debtor’s account in the sales ledger had been listed as a credit balance.
• The list of balances had been overcast by £60

The correct debit balance brought down on the debtors ledger control account 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 – £39,150 – (£70 x 2) + (£40 x 2) – £60 = £39,030
2. Not correct
3. Not correct
4. Not correct

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

A firm listed its debtors balances. These totalled £29,175. The balance on the firm’s sales ledger control account did not agree with this total. Upon investigation, the following errors were discovered.

• A credit balance of £80 on one debtor’s account in the sales ledger had been listed as a debit balance.
• A debit balance of £67 on another debtor’s account in the sales ledger had been listed as a credit balance.
• £220 received from a debtor had been entered in the purchases ledger instead of the sales ledger.
• The list of balances had been overcast by £72.

The correct (debit) balance on the sales ledger control account is?

Select ONE answer:

1. £28,857
2. £28,870
3. £29,001
4. £29,297

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 – £29,175 – (£80 x 2) + (£67 x 2) – £220 – £72 = £28,857
2. Not correct
3. Not correct
4. Not correct

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

A firm that sells exclusively on credit allows a discount of 2% to its customers if they pay by the due date, which they always do.

The following details’ are available for the firm’s most recent financial year:

• Amount owed by debtors at the beginning of the year £22,000
• Amount owed by debtors at the end of the year £24,000
• Bad debts written off during the year £3,500
• Money received from debtors during the year £147,000

The firm‘s credit sales for the year were?

Select ONE answer:

1. £148,469
2. £152,500
3. £155,500
4. £155,612

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

Answer 3:

Because 2% discount on £147,000 = 98% debt owed received. Therefore discount = £3,000

DebtorsDr Balance b/d £22,000
Dr Bad Debt Recovered £0
Dr Sales (Credit) £155,500
Dr Totals £177,500
Cr Bank £147,000
Cr Bank (Bad Debt Recovered) £0
Cr Discount Allowed £3,000
Cr Bad Debts £3,500
Cr Balance c/d £24,000
Cr Totals £177,500

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