1.4. Reconciliation and verification
A subsection of Accounting, 9706, through 1. Financial accounting (AS Level)
Listing 10 of 385 questions
The balance of a purchases ledger control account was $7270. However, the total of the accounts of trade payables was $6860. The following errors have been discovered. A credit note received from a supplier for $100 had been omitted from the book of prime entry. The discounts received column in the cash book had been understated by $50. When these errors were corrected the balance on the purchases ledger control account still did not match the total of the accounts of trade payables. What were the updated amounts after the corrections?
9706_w22_qp_13
MCQ
2022
Paper 1, Variant 3
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The trial balance of a business did not agree and a suspense account was opened. The following errors were then discovered. The sales journal total of $9150 had been credited to both the sales account and the sales ledger control account. The purchases journal total of $3450 had been entered correctly in the purchases account but as $3350 in the purchases ledger control account. Motor expenses of $6450 paid by cheque had only been entered in the bank account. What was the opening balance in the suspense account?
9706_w23_qp_13
MCQ
2023
Paper 1, Variant 3
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The closing balance of a purchases ledger control account was $7480. It did not agree with the total of the suppliers’ balances in the purchases ledger. The following two errors were found. An error of original entry occurred when a credit note from a supplier for $120 had been recorded as $210. Interest charged on an overdue supplier’s account of $40 had been debited to the purchases ledger control account. What is the corrected balance of the purchases ledger control account?
9706_w23_qp_13
MCQ
2023
Paper 1, Variant 3
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Yasmine has a retail business. She extracted a trial balance at 30 June 2023, the totals of which did not agree. State two types of error that will be revealed by a trial balance. Explain the meaning of each of the following types of error. Error of original entry Error of principle Error of commission Additional information The difference in the trial balance was posted to a suspense account to enable the financial statements to be produced. Yasmine discovered the following errors, correction of which would clear the difference. The sales journal total had been overstated by $300. The total of the purchases returns journal, $2450, had not been posted to the general ledger. Discounts allowed, $1660, had been posted to the credit of the discounts received account. The balance of the carriage inwards account at 30 June 2023, $3570, had been brought down as $3750. Prepare the suspense account to show the correction of the errors, clearly identifying the difference that was present in the trial balance before the errors were corrected. Suspense account $ $ Additional information Before discovering the errors, Yasmine had prepared a draft statement of profit or loss showing a profit for the year of $36 165. The suspense account balance was not included in the profit calculation. Calculate the revised profit for the year after correction of the errors. Increase $ Decrease $ $ Draft profit for the year 36 165 Error 1 Error 2 Error 3 Error 4 Revised profit for the year
9706_w23_qp_21
THEORY
2023
Paper 2, Variant 1
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Malik prepared a sales ledger control account for July 2023. However, the balance of the control account did not agree with the total of customers’ account balances in the sales ledger. He provided the following information. $ At 1 July 2023 Sales ledger control account balance 76 250 For the month of July 2023 Contra purchases ledger Sales journal 69 634 Cash book: customer cheques dishonoured Cash book: discounts allowed Journal: irrecoverable debts Cash book: receipts from credit customers 74 118 Sales returns journal 2 090 The following errors were discovered which accounted for the difference. The balance of a sales ledger customer’s account had been undercast by $300. The total of the sales returns journal had been overcast by $580. A journal entry to write off a customer account balance of $95 as irrecoverable had been correctly entered in the general ledger but had been posted to the debit side of the customer’s account. A cheque received from a customer, $320, had been correctly entered in the cash book but had been posted to the debit side of the customer’s account as $230. A further dishonoured cheque from a customer, $215, had not been entered in the cash book but had been correctly entered in the customer’s account. The list of customer account balances extracted from the sales ledger totalled $69 211. Prepare the sales ledger control account for the month of July 2023, taking into account the errors discovered. Dates are not required. Sales ledger control account Details $ Details $ Prepare a schedule of the corrected sales ledger account balances. Increase $ Decrease $ Total $ Per original list 69 211 Corrected balances State two limitations of preparing a control account.
9706_w23_qp_22
THEORY
2023
Paper 2, Variant 2
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The following errors were found after a suspense account was opened. A cash purchase of goods for resale for $450 had been completely omitted from the books. A payment for electricity was debited in the electricity account as $2500 instead of $5200. Discount allowed of $50 had been debited to the discounts received account. Motor repairs of $400 were credited to the motor vehicle at cost account. Which errors would be entered in the suspense account?
9706_w24_qp_11
MCQ
2024
Paper 1, Variant 1
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Questions Discovered
385