1. Financial accounting (AS Level)
A section of Accounting, 9706
Listing 10 of 1775 questions
Contador, a sole trader, has provided the following extract from the trial balance for the year ended 31 March 2015. He does not maintain control accounts as part of his accounting records. $ Debit balances 112 375 Credit balances 120 835 REQUIRED State the use of a suspense account. State three advantages to a business of maintaining a sales ledger control account. Additional information The following errors have been identified: The sales journal had been overcast by $26 350. Motor expenses of $5270 had been posted to the motor vehicles account. Motor vehicles had been depreciated at 20% per annum. Interest received of $8945 had been debited to both the bank account and the interest received account. REQUIRED Prepare journal entries to correct all of the errors identified. Narratives are not required. Assess the effect of these errors on the profit for the year.
9706_w16_qp_22
THEORY
2016
Paper 2, Variant 2
View
Noor, a sole trader, prepares bank reconciliation statements at the end of each month. REQUIRED State four benefits to a business of preparing a bank reconciliation statement. State two differences between a bank standing order and a direct debit. Additional information On 31 October 2019 Noor received the following bank statement for her business account. Date Details Dr Cr Balance $ $ $ 1 Oct Balance b/d 292.22 Cr 3 Oct Credit 927.40 1 219.62 Cr 6 Oct Direct debit: P Ltd 334.80 884.82 Cr 7 Oct Cheque 626344 118.48 766.34 Cr 9 Oct Cheque 626346 723.21 43.13 Cr 18 Oct Credit transfer: Tahir 184.95 228.08 Cr 21 Oct Bank charges 59.60 168.48 Cr 22 Oct Direct debit: Ayesha 172.80 4.32 Dr 24 Oct Credit 841.67 837.35 Cr 27 Oct Cheque 626347 1 206.22 368.87 Dr 29 Oct Credit transfer: H Ltd 229.48 139.39 Dr Noor’s cash book (bank columns) for October 2019 was as follows. Cash Book (bank columns) $ $ Oct Oct Z Ltd (cheque 626344) 118.48 Balance b/d 292.22 J Ltd (cheque 626345) 276.93 Sales 927.40 Ayan (cheque 626346) 723.21 Tahir (credit transfer) 184.95 P Ltd (direct debit) 334.80 Sales 841.67 Huma (cheque 626347) 1206.22 Sales 773.25 Usman (cheque 626348) 985.33 Balance c/d 625.48 3644.97 3644.97 Nov 1 Balance b/d 625.48 REQUIRED Prepare Noor’s updated cash book. Cash Book (bank columns) $ $ Balance b/d 625.48 Prepare a bank reconciliation statement at 31 October 2019. Start with the balance per the bank statement. Bank reconciliation statement at 31 October 2019 $ Balance per bank statement
9706_w20_qp_21
THEORY
2020
Paper 2, Variant 1
View
Shamal maintains a full set of accounting records. He has extracted a trial balance at 30 September 2021 that does not balance and he has opened a suspense account for the difference. Shamal has now identified the following six errors. There were no other errors. A payment of $169 for motor repairs had been correctly entered in the cash book but had been debited to the motor repairs account as $196. The purchase of new machinery, $670, had been debited to general expenses. Discount allowed of $175 had been entered correctly in the cash book but had not been posted to the discount allowed account. The sales journal was totalled at $86 961. The total should have been $86 741. A cheque for $425 received from McCann, a credit customer, had been correctly entered in the cash book but had been debited to the sales ledger control account. The total of the discount received column in the cash book, $490, had been entered twice on the correct side of the discount received account. REQUIRED Prepare the suspense account at 30 September 2021, clearly identifying the opening balance. Suspense Account Details $ Details $ Complete the table to name the type of error in each of the errors 1, 2 and 3 identified by Shamal. Error Type of error Explain two benefits to a business of preparing a purchases ledger control account. State two items that would appear on the credit side of a purchases ledger control account.
9706_w21_qp_22
THEORY
2021
Paper 2, Variant 2
View
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
View
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
View
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
View
Questions Discovered
1775