Tag: Accountants

The following receivables control account has been prepared for Alex Ltd:

RECEIVABLES CONTROL ACCOUNT

DR  Balance b/d 1 January  £318,650

DR  Credit sales  £157,780

DR  Cash sales  £84,260

DR  Discounts allowed to credit customers  £1,240

DR  Totals  £561,930

CR  Cash from credit customers  £181,140

CR  Refunds to credit customers  £280

CR  Irrecoverable debts written off  £1,390

CR  Balance c/d 31 January  £379,120

CR  Totals  £561,930

What should the closing balance at 31 January 2024 be after correcting the errors in the account?

Select ONE answer:

1. £292,380
2. £295,420
3. £292,940
4. £295,720

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 – –> DR £318,640 + £157,780 + £80 = £476,710 less CR £181,140 – £1,240 – £1,390 = Balance c/d 31/1/2024 £292,940
4. Not correct

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

Alex’s cash book at 30 April 2018 shows a balance at the bank of £2,490.

Comparison with the bank statement at the same date reveals the following differences:

• Unpresented cheques  £840
• Bank charges not in cash book  £50
• Receipts not yet credited by the bank  £470
• Dishonoured cheque not adjusted in cash book  £140

The correct cash book balance at 30 April 2018 is?

Select ONE answer:

1. £1,930
2. £2,300
3. £2,580
4. £3,140

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 – Original cash book figure £2,490 + Adjustment re charges £(50) + Adjustment re dishonoured cheque £(140) = £2,300
3. Not correct
4. Not correct

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

A receivables control account had a closing balance of £8,500.

It contained a contra to the payables ledger of £400, but this had been entered on the wrong side of the control account.

The correct debit balance on the control account is?

1. £7,700
2. £8,100
3. £8,900
4. £9,300

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 –   £8,500 – (2x £400) = £7,700
2. Not correct
3. Not correct
4. Not correct

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

The payables control account below contains a number of errors:

PAYABLES CONTROL ACCOUNT

DR   Opening balance          £318,600

DR  Cash paid to suppliers   £1,405,500

DR  Refunds received from suppliers  £2,700

DR  Total                          £1,726,800

  CR  Purchases                                £1,268,600

  CR  Discounts received                     £8,200

  CR  Contras with receivables              £48,000

  CR  Closing balance                        £402,000

  CR  Total                                      £1,726,800

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

Select ONE answer:

1. £122,800
2. £128,200
3. £144,600
4. £224,200

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 – DRs  Cash paid to suppliers £1,405,500, Contras with receivables £48,000, Discounts received  £8,200  Closing Balance £128,200 Total 1,589,900  CRs Opening balance £318,600, Purchases £1,268,600, Cash refunds £2,700  Total 1,589,900
3. Not correct
4. Not correct

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

Peri’s bookkeeper made the following mistakes:

1  Discount allowed £3,840 was credited to discounts received account.

2  Discount received £2,960 was debited to discounts allowed account.

3.  Discounts were otherwise correctly recorded.

Which of the following journal entries will correct the errors?

Select ONE answer:

1. Debit Discount allowed £7,680, Credit Discount received £S,920, Credit Suspense account, £1,760
2. Debit Discount allowed £880, Debit Discount received £880, Credit Suspense account £1,760
3. Debit Discount allowed £6,800, Credit Discount received £6,800
4. Debit Discount allowed £3,840, Credit Discount received £2,960, Credit Suspense account £880

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 – Start by posting the adjustment in full: Debit £ Discount allowed 3,840 Discount received 3,840 Credit £ Discount allowed 2,960 Discount received 2,960 + Suspense account 1,760
3. Not correct
4. Not correct

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