Bookkeeping Controls

Which payment method would a business choose, to transfer a large sum of money to a solicitor, for the purchase of a new business premises?

• BACS direct credit
• Cheque
• CHAPS
• Cash

Which one of the following payment methods does NOT effect the bank balance on the date of payment?

• Faster payments (online)
• CHAPS
• Bank draft
• Credit Card

When completing a bank reconciliation, any outstanding lodgements or unpresented cheques must be included. These differences are due to .........

• Timing differences
• Incorrect entry in the day book
• A mistake in the day book cross castings
• A difference in opinion

When balancing off a ledger account, the balance c/d always goes on the smallest side of the account

• True
• False

The purchase ledger is a list of individual credit supplier accounts. The total of all these accounts should reconcile to the ...............

• Bank balance
• Sales ledger control account
• Cash book total (credit side)
• Purchase ledger control account

The sales ledger is part of the double entry bookkeeping system

• True
• False

Individual transactions are posted to the sales ledger and purchase ledger. The totals of the days books are posted to the general ledger accounts (SLCA and PLCA). How does this help a business to identify errors quickly?

• The general ledger accounts can be checked against the subsidiary ledgers for discrepancies
• Errors when calculating trade discount can be easily identified
• Invoices not recorded anywhere in the accounting system by the bookkeeper can be identified quickly
• It doesn't

The year end balances of the control accounts are included in the final accounts.

• True
• False

Which side of the purchase ledger control account would 'credit purchases' be posted on?

• Debit
• Credit

A balance b/d on the debit side of a VAT control account shows that the business ........

• is due a refund from HMRC
• owes money to HMRC