Tag: Errors

Which THREE of the following differences between a company’s, cash book balance and its bank statement balance as at 30 November 2023 would feature in the bank reconciliation statement of Alex plc:

A  Cheques recorded and sent to suppliers before 30 November 2023 but not yet presented for pavment

B  Omission by the bank of a lodgement made by the company on 26 November 2023

C  Bank charges

D  Cheques paid in before 30 November 2023 but not credited by the bank until 3 December 2023

E  A customer’s cheque recorded and paid in before 30 November 2023 but dishonoured by the bank

Select ONE answer:

1. A, B, C
2. A, B, D
3. A, B, E
4. B, C, D

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 –> A represents unpresented cheques, and B and D represent uncredited lodgements. These are always included in the reconciliation of the bank statement balance to the corrected cash book balance. Bank charges (C) and dishonoured cheques (E) would appear on the bank statement and would have to be corrected in the cash book before reconciliation.
3. Not correct
4. Not correct

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

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

RECEIVABLES CONTROL ACCOOUNT

DR  Balance b/d 1 March 2024  £180,000 

DR  Cash from credit customers  £228,000

DR  Cash refunds to credit customers  £3,300

DR  Discounts allowed to credit customers  £4,200

DR  Totals  £415,500

CR  Credit sales  £182,000

CR  Contras against payables  £2,400

CR  Irrecoverable debts written off  £1,500

CR  Balance c/d 31 March 2024      £229,600

CR  Totals  £415,500

What should the closing balance be after correcting the errors made in preparing the account?

Select ONE answer:

1. £130,600
2. £129,200
3. £142,400
4. £214,600

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 –> DR £180,000 + £182.000 + £3,300 = £365,300 less CR £228,000 – £1,500 – £4,200 – £2,400 = Balance c/d 31/3/2024 £129,200
3. Not correct
4. Not correct

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

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.