Tag: Bank Reconciliation

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.

As at 31 December 2021 Alex ltd’s bank statement shows an overdraft of £1,500.

The statement includes bank charges of £30 which have not yet been recorded in the company’s cashbook.

On 29 December 2021 Alex ltd had paid a cheque of £500 to a supplier and banked £200 received from a trade receivable; neither of these items appear in the bank statement.

The overdraft on the company’s statement of financial position at 31 December 2021 should be?

Select ONE answer:

1. £1,800
2. £1,830
3. £1,200
4. £1,230

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 – £1,800 ==> Balance per bank statement £1,500 o/d Less unpresented cheque £500 Add uncredited lodgement £200 = Cash at bank balance £1,800 o/d
2. Not correct
3. Not correct
4. Not correct

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