Tag: KS3

A supplier sends you a statement showing a balance outstanding of £14,350.

Your own records show a balance outstanding of £14,500.

The reason for this difference could be that?

Select ONE answer:

1. The supplier sent an invoice for £150 which you have not yet received
2. The supplier has allowed you £150 cash discount which you omitted to enter in your ledgers
3. You have paid the supplier £1 50 which he has not yet accounted for
4. You have returned goods worth £150 which the supplier has not yet accounted for

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 –> 1, 3 and 4 would make the supplier’s statement £150
3. Not correct
4. Not correct

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

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.

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.

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.