In preparing Alex Ltd’s bank reconciliation statement at 31 March 2023, which THREE of the following items would give rise to amendments to the cash book?
A Bank charges £380 B Error by bank £1,000 (cheque incorrectly debited to the account) C Lodgements not credited £4,580 D Outstanding cheques £1,474 E Direct debit payment £350 F Cheque paid in by the company and dishonoured £400
Select ONE answer:
A, B, C
A, C, D
A, D, E
A, E, F
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 4
Not correct
Not correct
Not correct
Correct – Bank charges, direct debits and dishonoured cheques will all be written into the cash book. The other items affect the balance per the bank statement only.
Two errors have been found in Alex plc’s accounts:
1 The credit balance of £420 in Ahmed’s payables ledger account had been set off against his account in the receivables ledger. No entries had been made in the receivables and payables control accounts.
2 Thomas’s personal account balance of £240 had been removed from the receivables ledger as an irrecoverable debt. No entry had been made in the receivables control account
The journal that corrects both these errors is?
Select ONE answer:
Debit Payables control £420, Debit Irrecoverable debts expense £240, Credit Receivables control £660
Debit Receivables control £660, Credit Irrecoverable debts expense £240, Credit Payables control £420
Debit Payables control £660, Credit Irrecoverable debts expense £240
Debit Receivables control £420, Debit Irrecoverable debts expense £240, Credit Payables control £660
Show your workings to arrive at your answer, and explain and justify your reasons:
In preparing Alex Ltd’s bank reconciliation statement at 31 March 2023, which THREE of the following items would give rise to amendments to the cash book?
A Bank charges £380 B Error by bank £1,000 (cheque incorrectly debited to the account) C Lodgements not credited £4,580 D Outstanding cheques £1,474 E Direct debit payment £350 F Cheque paid in by the company and dishonoured £400
Select ONE answer:
A, B, C
A, C, D
A, D, E
A, E, F
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 4
Not correct
Not correct
Not correct
Correct – Bank charges, direct debits and dishonoured cheques will all be written into the cash book. The other items affect the balance per the bank statement only.
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 2
Notcorrect
Correct –> Unpresented cheques, bank errors and uncredited lodgements are included in the reconciliation of the bank statement balance to the corrected cash book balance. Bank charges (C) and dishonoured cheques (A) would appear on the bank statement and would have to be corrected in the cash book before reconciliation.
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