Tag: Bank Reconciliation

An error is identified where a discount received of £1,420 has been debited to both the payables control account and the discounts received account.

The journal required to correct this is?

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

Select ONE answer:

1. Debit Suspense £2,840, Credit Discount received £2,840
2. Debit Suspense £1,420, Credit Discount received £1,420
3. Debit Suspense £2,840, Credit Payables control £2,840
4. Debit Suspense £1,420, Credit Payables control £1,420

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 suspense £2,840, Cr Discount received £2,840
2. Not correct
3. Not correct
4. Not correct

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

A receivables ledger reconciliation was prepared by the bookkeeper of Alex & Co as at 31 March 2024 but one heading was illegible and has been called ‘other difference’.

RECEIVABLES CONTROL ACCOUNT
DR Balance B/D £25,320
DR Total £25,320

CR Sales day book overcast £1,000
CR Balance c/d £24,320
CR Total £25,320

Total per receivables ledger listing £23,890
Credit balance listed as debit £280
‘Other difference’ £710
Total £24,320

The ‘other difference’ is most likely to be?

Select ONE answer:

1. Contra settlement omitted from the memorandum ledgers
2. Invoice omitted from the sales day book
3. Balance omitted from the receivables ledger listing
4. Irrecoverable debt not written off in the memorandum ledger

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 – balance omitted from the receivables ledger listing (C). Both would be affected by (B); in (A) and (D) the receivables ledger would be reduced
4. Not correct

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

Which of the following is an error in only the receivables ledger, not the control account?

Select ONE answer:

1. Invoice omitted from the sales day book
2. Transposition error in posting to the receivables ledger from the sales day book
3. Transposition error in filling in the sales day book from an invoice sent out
4. Miscasting the total of the sales day book

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 –> Transposition error in posting to the receivables ledger from the sales day book (2). In (1) and (3) both the ledger and the control account will be affected. In (4) only the control account would be affected.
3. Not correct
4. Not correct

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

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

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

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

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