Reconciliation and verification

Goh’s business statements of financial position reported these net assets: 30 June 2014: $152000; 30 June 2015: $184000. In the year ended 30 June 2015, Goh introduced his private motor car into the business at a value of $14000. By 30 June 2015, the net book value of this motor car was $13200. He also took $7900 cash out of the business bank account. Calculate the profit for the year ended 30 June 2015.

Feb/March 2016

A sales ledger control account had been drawn up. An irrecoverable debt of $40 had been left out, and a discount allowed of $68 was recorded as $86. What overall effect did these mistakes have on the closing balance of the sales ledger control account?

Feb/March 2016

The totals on the trial balance are shown below: debit $500150 credit $500000 What error could be responsible for this difference?

Feb/March 2016

A business keeps a provision for doubtful debts at 5% per annum. Its trade receivables balance is $560000 at the beginning and $468000 at the end of the financial year. Which of the following statements are correct?

Feb/March 2016

A purchases ledger control account had been prepared, but it included several errors. What was the correct balance carried down?

Feb/March 2017

A suspense account has a debit balance of $350. What might have led to this?

Feb/March 2017

Which mistake would prevent a trial balance from balancing?

Feb/March 2018

Which group would be recorded only on the credit side of a sales ledger control account?

Feb/March 2018

Delph began trading on 1 July 2016. For the year ending 30 June 2017, he gave details about his sales and purchases.

Feb/March 2018

Over the year to 31 December 2018, Sim’s net assets rose by $1210. The following transactions occurred during 2018. 1 Payments from Sim’s personal bank account: rent for business office $3600, rent for personal residence $2000. 2 Goods taken for personal use: with a cost $6200 and sales value $7700. 3 Cash withdrawn: $9750. What profit was made for the year ended 31 December 2018?

Feb/March 2019

Which of the following is not one of the purposes of control accounts?

Feb/March 2019

The sales ledger control account showed a balance of $21500. This was not consistent with the combined balances of the sales ledger accounts. It was then found that a credit note worth $200 issued to a credit customer had been entered on the debit side of that customer’s account. What was the total of the balances in the business’s sales ledger before the error was corrected?

Feb/March 2019

The trial balance fails to agree, so a suspense account is created. Later, the following errors are discovered and the suspense account is cleared. What was the opening balance on the suspense account?

Feb/March 2020

The company’s bank statement displayed a credit balance of $2000. These errors were identified. What was the cash book balance before the errors were corrected?

Feb/March 2020

A trader dispatched goods to a customer on a sale or return basis. By the close of the trader’s year end, no information had been received about whether the customer had accepted the goods. In the trader’s books of account, where ought the value of the goods to be shown at the year end?

Feb/March 2020

Eden operates a small business and has supplied information for the year ending 31 December 2019.

Feb/March 2020

A business’s bank statement showed a credit balance of $4520, but this did not match the cash book. The following items were found: (1) Bank charges of $89 had not been recorded in the cash book. (2) Unpresented cheques paid to suppliers totalled $680. (3) A dishonoured cheque for $210 was listed on the bank statement, but had not been entered in the cash book. (4) Sales receipts of $750 had been entered in the cash book, but were absent from the bank statement. What bank balance should be reported in the statement of financial position?

Feb/March 2021

What might assist a book-keeper in spotting errors in the accounting records of a business?

Feb/March 2021

The balance at the end of a purchases ledger control account stands at $163762. The purchases journal has been undercast by $1000. What should the corrected closing balance on the purchases ledger control account be?

Feb/March 2021

A business worked out its draft profit for the year to be $15000. It was then found that: (1) General expenses had been under-recorded by $600. (2) The sales journal total of $55690 had been posted into the sales account as $56590. (3) Repairs to vehicles costing $1100 had been entered in the vehicles (at cost) account. (4) The salaries account included travelling expenses of $2400 that had been paid to the salesmen. What should the correct profit for the year be?

Feb/March 2021

The business’s year end falls on 31 December 2021. Inventory was counted on 5 January 2022 and, at cost, was valued at $30000$. The following matters were then found. 1. Goods bought and received after the year end, with a cost of $1500$, had been included in the valuation. 2. Goods returned by a customer after the year end were also included. Their selling price was $900$ and this price contained a mark-up of $25\%$ during the year. 3. Some inventory items included at cost $500$ were damaged. After repairs costing $100$, they could be sold for $300$. Which inventory figure should be shown in the financial statements at 31 December 2021?

Feb/March 2022

A sole trader was given the information below for the year to 31 December. Non-current assets rose by $25\,000. Current assets rose by $10\,000. Current liabilities rose by $12\,500. Extra capital added during the year was $20\,000. Drawings taken for the year were $13\,000. What was the profit for the year ended 31 December?

Feb/March 2022

A trial balance contained a suspense account. The bank balance of $28142$ had been entered wrongly as an overdraft and shown on the credit side as $28142$. In addition, an addition error occurred and the debit side of the trial balance had been undercast by $450$. Which entry in the suspense account would rectify these errors?

Feb/March 2022

At the end of the month, a business bank statement reported a credit balance of $12\,697. This did not match the balance in the cash book. The following discrepancies were identified. 1. A cheque received, $7\,170, was entered in the cash book as $7\,710. 2. A cheque paid in, $2\,400, had not yet been cleared by the bank. 3. A standing order, $450, was shown in the cash book but had not been processed by the bank. 4. Bank interest payable of $642 had not been recorded in the cash book. What was the cash book balance before the necessary corrections were made?

Feb/March 2023

At the close of the financial period, a trader’s sales ledger control account recorded a debit balance of $28500. This was not in line with the combined balance of the separate trade receivables accounts in the sales ledger. The errors below were then found. 1 A dishonoured cheque for $300 received from a credit customer had been posted to the credit side of the sales ledger control account. 2 Contras amounting to $500, which had been posted correctly in the sales ledger, had been left out of the sales ledger control account. 3 Discounts allowed of $700 had not been recorded in the sales ledger control account. Which amount ought to be shown for trade receivables in the financial statements?

Feb/March 2023

The expense of repainting a property was entered on the debit side of the property account. What kind of error was made?

Feb/March 2023

The trial balance fails to balance, and the mismatch has been posted to a suspense account. The mistakes below have been identified. 1. A rent payment of $630 made in cash has been credited in the cash book and debited to the irrecoverable debts account. 2. The provision for depreciation account has been overcast by $960. 3. The purchases ledger control account balance of $48\,300 has been treated as a debit balance. What debit amount should be entered in the suspense account to correct the error?

Feb/March 2023

What advantages does preparing a bank reconciliation statement offer?

Feb/March 2023

Amit carried out a reconciliation between his cash book and his bank statement. What action did Amit take regarding the items that this reconciliation uncovered?

Feb/March 2024

At 31 December, the bank statement for a business shows a credit balance of $\$1570$. When the cash book was checked against the bank statement, the following items were found: - unpresented cheques: $\$1250$ - uncredited bankings: $\$1800$ A direct debit of $\$230$ had been entered in the cash book as $\$320$. What is the revised cash book balance at 31 December?

Feb/March 2024

What advantages come from preparing a sales ledger control account?

Feb/March 2024

A company had drawn up its purchases ledger control account, and the balance shown was $\$15\,960$. The following discrepancies were then found: 1 Discounts received of $\$450$ had been recorded in the purchases ledger control account as $\$540$. 2 A payment of $\$720$ made to a supplier had not been posted to his account. 3 The purchases ledger debit balances carried down, with a total of $\$110$, had been left out of the control account. 4 A contra entry of $\$170$ had been entered in the purchases ledger but not in the purchases ledger control account. What should the correct total of the trade payables be?

Feb/March 2024

Which error would prevent a trial balance from balancing?

Feb/March 2024

A business drew up a trial balance that contained a suspense account. Draft financial statements were then produced, and these showed a profit for the year of $85\,000. The following mistakes were later found. 1 Discounts allowed of $1\,000 had been debited to the discounts received account. 2 Motoring expenses of $4\,000 had been debited to the purchases account. 3 A payment for purchases of $5\,000 had been entered correctly in the cash book but credited to the drawings account. Once these errors had been corrected, the balance on the suspense account was cleared. What was the revised profit for the year?

Feb/March 2024

A bookkeeper checked the business bank statement against the cash book. He then brought the cash book up to date and, at the end, drew up a bank reconciliation statement. Why had the bank reconciliation statement been prepared?

Feb/March 2025

A business keeps control accounts as part of double entry bookkeeping. At the end of a financial period, the balance on the sales ledger control account of $64\,200$ did not match the sum of the business’s individual sales ledger balances. The following mistakes were found. 1. An irrecoverable debt of $800$, recorded in the sales ledger control account, was left out of the trade receivable account. 2. Discounts allowed of $950$ were entered in the sales ledger accounts but were shown as $590$ in the cash book. 3. A contra of $4100$ between accounts in the sales and purchases ledgers was entered the wrong way round in the control accounts. No other errors existed. What was the total of the trade receivables at the end of the period after the adjustments?

Feb/March 2025

Which error will not have any effect on the trial balance?

Feb/March 2025

The total debits and credits in a business’s trial balance did not match. A suspense account was opened to record the difference. The following errors were later found: 1. The total from the sales journal of $16000 had been posted to the debit side of the purchases account. 2. $7000 had been entered correctly in the rent received account but was debited as $700 in the cash book. Once these errors were corrected, the suspense account was cleared and the trial balance totals matched. What amount was shown in the trial balance for the suspense account before the corrections were made?

Feb/March 2025

Moe operates a trading business and keeps control accounts as part of double entry. The details below apply to November 2024.

Feb/March 2025

Konrad’s purchases ledger showed trade payables balances adding up to $57400$. The following mistakes were then identified: Discount allowed recorded too high in the cash book: $2000$ Returns outwards left out of a supplier’s account: $350$ Payments to trade payables recorded too low in the cash book: $137$ Purchases journal recorded too high: $500$ What is the corrected total of trade payables balances?

May/June 2016

A company’s sales ledger control account showed a debit balance of $125000$. The following errors were then found: 1. A bad debt of $800$ had not been recorded in the sales ledger control account. 2. An increase of $500$ was needed in the provision for doubtful debts. 3. The sales journal had been overcast by $1000$. What was the total of the balances in the sales ledger?

May/June 2016

The suspense account for a business is shown below. Discount allowed: $150$ Opening balance: $100$ Sales: $50$ Which statements are correct?

May/June 2016

A bank statement shows a credit balance of $1500$. A payment of $500$ and a receipt of $1250$ were entered in the cash book, but they do not yet appear on the bank statement. Bank interest payable of $1100$ was recorded correctly in the cash book, but because of a bank error it was shown on the bank statement as $1000$. What is the balance in the cash book?

May/June 2016

The following data are given for rent and rates: prepaid rent at the start of the year $1250, accrued rates at the start of the year $1380, rent and rates income statement amount $8750, prepaid rent at the end of the year $1104, and accrued rates at the end of the year $1000. Calculate the amount paid for rent and rates during the year.

May/June 2016

The directors of a company are preparing the financial statements for the year ended 30 April 2016. They find that the inventory at 1 May 2015 had been overstated by $50000. What effects would correcting this error have?

May/June 2016

A business left out discounts allowed of $700 from its trial balance. In the year, a machine was sold for cash for $500, but the only accounting entry recorded was a debit to the bank account. What is the balance on the suspense account before these errors are corrected?

May/June 2016

In an income statement, carriage outwards of $5000 has been entered as carriage inwards. Carriage inwards of $3000 has been entered as carriage outwards. What are the effect(s) of these errors on the profit?

May/June 2016

The sum of the trade payables balances in Konrad’s purchases ledger was $57400. These errors were then found. What is the corrected total of the trade payables balances?

May/June 2016

A company's sales ledger control account showed a debit balance of $125000. The errors below were then found. What was the combined total of the balances in the sales ledger?

May/June 2016

The suspense account for a business is shown below. Which of the statements are right?

May/June 2016

The bank statement displays a credit balance of $1500. A payment for $500 and a receipt for $1250 have been entered in the cash book, but they do not yet appear on the bank statement. Bank interest payable of $1100 was entered correctly in the cash book, but because of a bank error it was shown on the bank statement as $1000. What is the resulting cash book balance?

May/June 2016

At the end of the year, the cash book records a credit balance of $4800. The bank statement showed bank charges of $25 that were missing from the cash book. Cheque payments of $250 recorded in the cash book before the year end had still not been presented to the bank. How should the bank balance be presented in the statement of financial position?

May/June 2017

A purchases ledger control account has been matched against the balances in the purchases ledger as shown below: control account balance: $70000 a page total from the purchases journal that has not been posted to the general ledger: $2000 discount allowed by trade payables that has not been posted to the purchases ledger: $1500 total of balances in the purchases ledger: $73500 What amount for trade payables ought to appear in the statement of financial position?

May/June 2017

A business gives the following data. Year 1: profit for the year $30000$, cost of goods sold $240000$. Year 2: profit for the year $40000$, cost of goods sold $320000$. The owner later finds that, at the close of year 1, inventory had been overstated by $2000$. What are the adjusted profits for the year and cost of goods sold figures?

May/June 2017

Sam could not carry out a physical stock count on 31 December 2016. On 3 January 2017, some inventory was sold to Abdul for $11950$. Its cost price had been $9560$. On 4 January 2017, inventory was returned by Sita. It had originally been sold for $2390$. The cost price of this inventory was $1912$. Sam priced his inventory on 5 January 2017 at cost, $59750$. What was the inventory value on 31 December 2016?

May/June 2017

The following errors were identified after a suspense account had been created.

May/June 2017

The business cash book includes the following entries that have not yet appeared on the bank statement: cheques drawn $3000 and amounts banked $250. In the cash book, the bank balance is shown as $2600 credit. What balance is shown on the bank statement?

May/June 2017

The purchases ledger control account showed a closing balance of $\$20000$. Purchases returns of $\$1500$ were recorded on the incorrect side of the control account. What is the corrected balance?

May/June 2017

At 30 April, the cash book for a business has a debit balance of $\$4200$. On the bank statement, a direct debit of $\$200$ for insurance has been shown, although it has not yet been recorded in the cash book. In addition, a cheque paid to a supplier was entered correctly in the cash book as $\$650$, but the bank statement shows it as $\$690$. What is the bank amount to be reported in the statement of financial position at 30 April?

May/June 2017

A bookkeeper drew up a sales ledger control account. The errors below were then found. Which of these errors would cause the closing balance of the control account not to match the total of the customers’ account balances?

May/June 2017

An inward returns item of $\$180$ has been entered incorrectly as carriage inwards. What effect will the correction of this error have on profit?

May/June 2018

In the last month, a business had some stock stolen. The table gives the trading figures for that month. Opening inventory, at cost: $50\,000$ Purchases: $220\,000$ Sales: $300\,000$ Closing inventory, at cost: $16\,000$ The mark-up was $25\%$. What was the cost price of the stolen inventory?

May/June 2018

Which error, when corrected, needs an entry in the suspense account?

May/June 2018

It is discovered that opening inventory has been overstated by $\$8000$ and closing inventory has been overstated by $\$6500$. What effect will correcting these errors have on profit for the year?

May/June 2018

A business has given the following details: provision for doubtful debts at 1 January 2017 $\$2950$; trade receivables on 31 December 2017 $\$75000$. The provision for doubtful debts is to be kept at $5\%$ of trade receivables. Which journal entries are required on 31 December 2017?

May/June 2018

A business supplied the following figures for one month: credit sales $\$16810$; sales returns $\$1150$; discounts allowed $\$276$; irrecoverable debts written off $\$100$; increase in provision for doubtful debts $\$600$; increase in trade receivables $\$406$. What amount of cash was received from trade receivables during the month?

May/June 2018

By year-end, the debit balance on a sales ledger control account stood at $\$15000$. It was subsequently found that, when a customer owing the business $\$500$ made payment, she deducted a cash discount of $\$20$. This had been entered correctly in the discount column of the cash book, and the full $\$500$ was recorded in the bank column. Which value for trade receivables ought to be shown in the statement of financial position?

May/June 2018

At the start of the financial year, inventory had a value of $15000$. Over the course of the year, sales amounting to $21000$ and purchases amounting to $18000$ took place. Sadly, every item of inventory was stolen on the final day of the financial year. Goods are marked up by $50\%$ when the selling price is worked out. What is the cost of the stolen inventory?

May/June 2018

The business does not maintain complete accounting records. Every transaction is settled in cash. Which item will not be needed in order to calculate the owner’s cash drawings?

May/June 2018

Errors may occur when preparing both the sales ledger and the sales ledger control account. Which error would need an adjustment in the sales ledger control account alone to put it right?

May/June 2018

A business’s trial balance failed to agree. The errors listed below were discovered. What was the suspense account’s opening balance?

May/June 2018

The bank column in a cash book had a credit balance of $5000. Unpresented cheques totalled $1500. The bank statement included bank charges of $700 that had not been entered in the cash book. What balance appears on the bank statement?

May/June 2018

In the course of the month, a company suffered a burglary and a quantity of inventory was stolen. The table gives the company’s figures for the month: opening inventory, at cost $30000$; purchases $210000$; revenue $330000$; closing inventory, at cost $4000$. A gross profit of $30\%$ on all sales had been made. What was the cost of the inventory lost in the burglary?

May/June 2018

At the beginning of the year, a business had trade payables of $13000$. By the end of the year, the amount it owed to trade payables had risen to $15000$. Over the year, it settled $190000$, after receiving a cash discount of $10000$. What was the amount of the credit purchases for the year?

May/June 2018

Fred wants to identify the unpresented cheques of his business. Which side of the cash book and which column in the bank statement should he compare?

May/June 2018

By what method is a reduction in the provision for doubtful debts recorded?

May/June 2018

The company’s financial year ends on 30 June, yet the inventory was not able to be counted until 6 July. On that date, the inventory was valued at $86500$. The table lists the inventory changes between 30 June and 6 July: sales (at cost) $1750$; purchases $1550$; returns inwards at cost $310$; returns outwards $190$. What was the inventory value on 30 June?

May/June 2018

A purchases ledger control account has these figures: opening balance $1200$; closing balance $1300$; purchases $18400$; payments made $17800$; discount received $300$. Which item is entered in the control account to show the contra with the sales ledger control account?

May/June 2018

A bank statement has a credit balance of $1500. A payment of $500 and a receipt of $1250 were entered in the cash book, but they have not yet been shown on the bank statement. Bank interest payable of $1100 was recorded correctly in the cash book, but because of a bank mistake it was entered on the bank statement as $1000. What is the cash book balance?

May/June 2019

A business has the following information. The balance in its purchases ledger control account stood at $5900. The combined balances in the purchases ledger were $5510. These errors were then found. 1 The total in the purchases journal had been overstated by $250. 2 A sales ledger contra of $340 was not included in the purchases ledger control account. 3 A supplier received $400, which was entered correctly in the cash book, but only $200 was posted to the supplier’s account. What is the correct value of trade payables?

May/June 2019

A book-keeper cross-checked the business bank statement against the cash book. After that, he brought the cash book up to date and, in the end, drew up a bank reconciliation statement. For what reason was the bank reconciliation statement prepared?

May/June 2019

As at 31 December 2018, the business showed these balances. Sales ledger: $12\,800 Sales ledger control account: $15\,200 Which error accounts for the gap between the two amounts?

May/June 2019

A business’s sales ledger control account showed a closing balance of $21\,650$. This figure did not match the total of the sales ledger balances. The following mistakes were found. Discount allowed of $1\,460$ was recorded on the debit side of the sales ledger control account. A sales invoice for $1\,200$ sent to J Ravi had been entered in J Rajid’s account. A contra to the purchase ledger had been entered correctly in the sales ledger as $600$ but was shown in the sales ledger control account as $900$. What is the correct balance of the sales ledger control account?

May/June 2019

In a bank reconciliation statement, the cash book shows a credit balance of $400$ and the bank statements show a balance in hand of $100$. The bank reconciliation statement also contains unpresented cheques of $700$ together with cheques banked and not yet credited in the bank statements. What is the total value of cheques banked and not yet credited?

May/June 2019

When a trial balance did not agree, a suspense account was opened. It was later found that returns of $200$ had been entered correctly in the supplier’s account but were debited to the sales returns account. No other errors existed. What was the balance on the suspense account before this error was corrected?

May/June 2019

At the close of its financial year, a business had trade receivables of $16\,000$ and a provision for doubtful debts of $640$. The provision must be kept at $5\%$. Which amount is reported in the income statement?

May/June 2019

At $30$ November $2018$, Lawrence gave the details below. The balances in the purchases ledger control account and the sales ledger control account did not match the respective listings of balances extracted from the purchases ledger and sales ledger. The following items were found.

May/June 2019

Cheng is a sole trader who keeps control accounts.

May/June 2019

A business trial balance failed to agree, so a suspense account was opened. The errors below were subsequently found. 1. The sales journal total of $9150 had been posted as a credit in both the sales account and the sales ledger control account. 2. The purchases journal total of $3450 had been recorded correctly in the purchases account, but as $3350 in the purchases ledger control account. 3. Motor expenses of $6450 paid by cheque had been recorded only in the bank account. What opening balance should the suspense account have?

May/June 2020

A bank statement indicated an overdraft of $750. Afterward, the following matters were found. 1. A cheque for $570, sent out to settle rent, had not yet been presented. 2. A cheque received for $624 did not appear on the bank statement. 3. The bank statement showed a bank charge of $50, but this had not been recorded in the cash book. What overdraft amount should be shown in the statement of financial position?

May/June 2020

The business has the following financial information. Draft profit for the year: $12650 Closing capital: $52780 The following error has been found. Private fuel costs, $1930, were entered in the business motor expenses account. What should the corrected figures for the year be?

May/June 2020

The sales ledger control account shows a closing balance of $21000. A contra entry of $700 with the purchases ledger control account was then found to have been posted to the incorrect side of the sales ledger control account. Calculate the correct balance on the sales ledger control account.

May/June 2020

A sole trader does not maintain a full set of accounting records. He thinks that a member of staff has taken some cash. Which of the following items would not be required to work out the missing amount?

May/June 2020

The information below has been given by a business. 31 December 2018: trade receivables $46200, provision for doubtful debts $1386 31 December 2019: trade receivables $48100, provision for doubtful debts $1924 Which statement has to be correct?

May/June 2020

The statement of financial position contained the balances at 31 December 2019 for partners L and M, with both capital accounts and current accounts included. Net assets on 1 January 2019 were $14\,000$. Property was revalued to a higher amount by $12\,000$ in the year ended 31 December 2019. No drawings were taken during the year. What profit was earned for the year ended 31 December 2019?

May/June 2020

In a sales ledger control account, what do the debit side closing balance carried down and the credit side opening balance brought down show?

May/June 2020

A business trial balance failed to agree, so a suspense account was created. The errors below were then found. What was the starting balance in the suspense account?

May/June 2020

The bank statement indicated an overdraft of $750. The following items were then found. What overdraft figure should be shown in the statement of financial position?

May/June 2020

Jason is the person who looks after his business’s accounting records. He has found some mistakes in this year’s accounts.

May/June 2020

Balances in Reena’s purchases ledger control account on 29 February 2020, along with data from the books of prime entry for March 2020, are given, together with extra details about errors in a sales ledger control account.

May/June 2020