Acca f3 Financial Accounting (int) Study Text

424

Exam question bank  

23 

The following control account has been prepared by a trainee accountant:  

RECEIVABLES LEDGER CONTROL ACCOUNT 

$

$

Opening balance

308,600

Cash received from credit

customers

147,200

Credit sales

154,200

Discount allowed to credit

customers

1,400

Cash sales

88,100

Interest charged on overdue

accounts

2,400

Contras against credit balance in

payable ledger 

4,600

Irrecoverable debts written off

4,900

Allowance for receivable

2,800

Closing balance

396,800

555,500

555,500

What should the closing balance be when all the errors made in preparing the receivables ledger 

control account have been corrected?

A $395,200 

B $304,300 

C $309,500 

D $307,100 

(2 marks) 

24 

Alpha received a statement of account from a supplier Beta, showing a balance to be paid of 

$8,950. Alpha’s payables ledger account for Beta shows a balance due to Beta of $4,140.

Investigation reveals the following:

(1) 

Cash paid to Beta $4,080 has not been allowed for by Beta  

(2) 

Alpha’s ledger account has not been adjusted for $40 of cash discount disallowed by Beta.  

What discrepancy remains between Alpha’s and Beta’s records after allowing for these items? 

A $690 

B $770 

C $9,850 

D $9,930 

(2 marks) 

25 

Mountain sells goods on credit to Hill. Hill receives a 10% trade discount from Mountain and a 

further 5% settlement discount if goods are paid for within 14 days. Hill bought goods with a list 

price of $200,000 from Mountain. Sales tax is at 17.5%.

What amount should be included in Mountain’s receivables ledger for this transaction? 

A $235,000 

B $211,500 

C $200,925 

D $209,925 

(2 marks) 

26 

The total of the list of balances in Valley’s payables ledger was $438,900 at 30 June 20X6. This 

balance did not agree with Valley’s payables ledger control account balance. The following errors 

were discovered:

(1) 

A contra entry of $980 was recorded in the payables ledger control account, but not in the 

payables ledger. 

(2) 

The total of the purchase returns daybook was undercast by $1,000. 

(3) 

An invoice for $4,344 was posted to the supplier’s account as $4,434. 

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  Exam question bank

425

What amount should Valley report in its statement of financial position as accounts payable at 30 

June 20X6? 

A $436,830 

B $438,010 

C $439,790 

D $437,830 

(2 marks) 

27 

The following bank reconciliation statement has been prepared by a trainee accountant:  

$

Overdraft per bank statement

3,860

less: Outstanding cheques

9,160

5,300

add: Deposits credited after date

16,690

Cash at bank as calculated above

21,990

What should be the correct balance per the cash book? 

A 

$21,990 balance at bank as stated 

B 

$3,670 balance at bank 

C 

$11,390 balance at bank 

D $3,670 

overdrawn. 

(2 marks) 

28 

In preparing a company’s bank reconciliation statement at March 20X6, the following items are 

causing the difference between the cash book balance and the bank statement balance:

(1) 

Bank charges $380  

(2) 

Error by bank $1,000 (cheque incorrectly debited to the account)  

(3) 

Lodgements not credited $4,580  

(4) Outstanding 

cheques 

$1,475 

 

(5) Direct 

debit 

$350 

 

(6) 

Cheque paid in by the company and dishonoured $400.  

Which of these items will require an entry in the cash book? 

A 

2, 4 and 6 

B 

1, 5 and 6 

C 

3, 4 and 5 

D 

1, 2 and 3 

(2 marks) 

29 

The debit side of a company’s trial balance totals $800 more than the credit side.  

Which one of the following errors would fully account for the difference?

A 

$400 paid for plant maintenance has been correctly entered in the cash book and credited to 

the plant asset account. 

B 

Discount received $400 has been debited to discount allowed account 

C 

A receipt of $800 for commission receivable has been omitted from the records 

D 

The petty cash balance of $800 has been omitted from the trial balance. 

(2 marks) 

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426

Exam question bank  

30 

A company’s income statement for the year ended 31 December 20X5 showed a net profit of 

$83,600. It was later found that $18,000 paid for the purchase of a motor van had been debited to 

the motor expenses account. It is the company’s policy to depreciate motor vans at 25 per cent per 

year on the straight line basis, with a full year’s charge in the year of acquisition.

What would the net profit be after adjusting for this error? 

A $106,100 

B $70,100 

C $97,100 

D $101,600 

(2 marks) 

31 

Q’s trial balance failed to agree and a suspense account was opened for the difference. Q does not 

keep receivables and payables control accounts. The following errors were found in Q’s accounting 

records:

(1) 

In recording an issue of shares at par, cash received of $333,000 was credited to the 

ordinary share capital account as $330,000

(2) 

Cash $2,800 paid for plant repairs was correctly accounted for in the cash book but was 

credited to the plant asset register 

(3) 

The petty cash book balance $500 had been omitted from the trial balance  

(4) 

A cheque for $78,400 paid for the purchase of a motor car was debited to the motor 

vehicles account as $87,400.

Which of the errors will require an entry to the suspense account to correct them? 

A 

1, 2 and 4 only 

B 

1, 2, 3 and 4 

C 

1 and 4 only 

D 

2 and 3 only 

(2 marks) 

32 

The bookkeeper of Field made the following mistakes: Discounts allowed $3,840 was credited to 

the discounts received account Discounts received $2,960 was debited to the discounts allowed 

account

Which journal entry will correct the errors?

 DR 

CR

A Discounts 

allowed 

$7,680 

 

 Discounts 

received 

 

$5,920 

 Suspense 

account 

 

$1,760 

B Discounts 

allowed 

$880 

 

 Discounts 

received 

$880 

 

 Suspense 

account 

 

$1,760 

C Discounts 

allowed 

$6,800 

 

 Discounts 

received 

 

$6,800 

D Discounts 

allowed 

$3,840 

 

 Discounts 

received 

 

$2,960 

 Suspense 

account 

 

$880 

(2 marks) 

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