Tag: Errors

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

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

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.

Which of the following statements about bank reconciliations are correct?

1. All differences between the cash book and the bank statement must be corrected by means of a journal entry.
2. In preparing a bank reconciliation, lodgements recorded before date in the cash book but credited by the bank after date should reduce an overdrawn balance in the bank statement.
3. Bank charges not yet entered in the cash book should be dealt, with by an adjustment to the balance per the bank statement.
4. If a cheque received from a customer is dishonoured after date, a credit entry in the cash book is required.

Select ONE answer:

1. Was credited to a non-current assets account
2. Was debited to the purchases account
3. Was debited to the equipment account
4. Was debited to the correct account but with 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 2

1. Notcorrect
2. Correct – In preparing a bank reconciliation, uncredited lodgements reduce an overdrawn balance in the bank statement. If a cheque received from a customer is dishonoured after date, a credit entry in the cash book is required to reinstate the debt. Not all differences between the cash book and the bank statement must be corrected by means of a journal entry, since some items appear in the bank reconciliation only (eg errors by the bank, unpresented cheques and uncredited lodgements). Bank charges not yet entered in the cash book should be dealt with by updating the cash book, not by making an adjustment to the balance per the bank statement.
3. Not correct
4. Not correct

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

The balance on Alex’s cash book is £27 overdrawn.

His bank statement shows that he is £625 in credit.

When Alex does a reconciliation, he finds that there are unpresented cheques of £327, unposted direct debits of £200, and a customer has paid £525 directly into his bank account.

His cash book should have a debit balance of???

Select ONE answer:

1. £298
2. £352
3. £752
4. £952

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 –> -27 – £200 + £525
2. Not correct
3. Not correct
4. Not correct

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