1.4. Reconciliation and verification
A subsection of Accounting, 9706, through 1. Financial accounting (AS Level)
Listing 10 of 385 questions
At the end of a financial period, the total of the individual balances in the purchases ledger was $149 000. The following errors were then discovered. A contra for $2500 had been omitted from a supplier account. Discounts received of $1200 had been credited to a supplier’s account as $2100. No entries had been made for a credit purchase of $5100 from a supplier. Purchases returns of $3000 had been credited to a supplier’s account. What was the corrected total of the individual balances in the purchases ledger at the end of the period?
9706_s23_qp_13
MCQ
2023
Paper 1, Variant 3
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Rudra prepares bank reconciliation statements for his business at the end of each month. REQUIRED State three reasons why it is important to a business to prepare bank reconciliation statements at regular intervals. Additional information On 31 March 2022 the balance shown in the business’s cash book (bank columns) was $3060 overdrawn. This did not agree with the balance shown on the business’s bank statement on this date. The difference in the two balances was accounted for by the following: Rudra had omitted to record a direct debit for water charges of $442. There were unpresented cheques: TK Stores $482, RH Supplies $1043. Bank charges, $85, appeared on the bank statement but had not yet been recorded in the cash book. Rudra had debited the cash book with cash takings, $893, but this had not yet been recorded by the bank. A cheque payment to Peter, $320, had been correctly recorded in the bank statement, but had been entered in the cash book as $230. The bank statement included an entry for a dishonoured cheque for $582 received by Rudra from Jamia. No entries had been made in the cash book to record the dishonoured cheque. An error had been made in the cash book. Interest received, $225, had been correctly recorded in the bank statement, but had been credited in the cash book. REQUIRED Prepare the cash book to show the updated balance at 31 March 2022. Dates are not required. Cash book (bank columns) $ $ Prepare a bank reconciliation statement to show the bank statement balance at 31 March 2022. Rudra Bank reconciliation statement at 31 March 2022 $ $ Balance as per updated cash book Define each of the following terms: unpresented cheque dishonoured cheque.
9706_s23_qp_22
THEORY
2023
Paper 2, Variant 2
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X and Y are in partnership, sharing profits and losses in the ratio of 2:1. X had taken goods costing $1500 from the business for his own use. The goods had been treated as a sale and credited to the sales account at their normal selling price of $2400. It was agreed that the goods should have been credited to the purchases account and not to sales and the records were corrected accordingly. Which entries should be made in the partners’ current accounts to make the correction?
9706_w12_qp_13
MCQ
2012
Paper 1, Variant 3
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Questions Discovered
385