Tag: Sales Ledger Control Account

Alex’s business bank statement showed an overdrawn balance of £5,250 on 31 October 2021.

When this was reconciled to the cash book, the following differences were noted:

• Unpresented cheques – £1,070
• Uncredited lodgements – £1,240
• Standing order for insurance premium payable not entered in the cash book  – £890
• Overdraft interest not recorded in the cash book – £80
• Credited in error to Alex’s account by the bank – £300

What was the original balance on Alex’s cash book at 31 October 2021?

Select ONE answer:

1. £4,450 credit
2. £4,410 credit
3. £2,940 credit
4. £1,670 debit

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. Not correct
2. Correct – 4,410 credit ==> £5,250 o/d – £1,070 + £1,240 – £300 = £5,380 credit balance – £890 s/o – £80 o/d interest = £4,410 credit 
3. Not correct
4. Not correct

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

In a business that uses control accounts, which of the following errors could result in a suspense account being required to balance the trial balance?

Select ONE answer:

1. Cash received from receivables treated as a cash sale
2. A supplier’s invoice for £32 recorded as £23 in the purchases account
3. Payments to suppliers of £647 recorded as £674 in the payables ledger
4. One page lost from the purchase daybook

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. Not correct
2. Correct – A supplier’s invoice for £32 recorded as £23 in the purchases account, which is a transposition error in the nominal ledger. In (1) we are still recording a Dr and Cr. The payables ledger does not affect the trial balance as it is a memorandum account (3) and in (4) neither side of the entry will be recorded.
3. Not correct
4. Not correct

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