Revision 1 Principles of Bookkeeping Controls

A statutory deduction from employee's pay

• Employer's National Insurance Contributions

• Income Tax

• Net Pay

• Trade Union Fees

Same day electronic payments (normally taking 2 hours) through a bank is known as a

• Faster Payment

• Direct Debit

• Standing Order

• CHAPS

A card payment system which requires the purchaser to enter a 4 digit security number at the point of sale is a

• Chip and Pin

• Standing Order

• Bank Transfer

• Debit Card

A mistake in the ledgers caused by the entries being made on the wrong side of the accounts is ...

• a reversal of entries

• an error of principle

• an error of omission

• an error of commission

A mistake in the ledgers caused by a transaction being recorded in the wrong type of account is ..

• a reversal of entries

• an error of principle

• an error of omission

• an error of commission

A mistake in the ledgers caused by a transaction being recorded in the wrong person's account is ....

• an error of commission

• an error of original entry

• a compensating error

• a reversal of entries

What should be the amount in the suspense account, if Debits amount to £5,500 and Credits amount to £6,000 on the trial balance.

• £500 debit balance

• £500 credit balance

An debt is to be written off. Gross debt is £720, VAT is £120. What are the entries?

• DR Irrecoverable Debt £600

  DR VAT £120

  CR Receivables Ledger Control £720

• DR Irrecoverable Debt £720

  CR Receivables Ledger Control £720

• DR Receivables Ledger Control £720

  CR Irrecoverable Debts £720

• DR Irrecoverable Debt £720

  DR VAT £120

  CR Receivables Ledger Control £840

The total monthly payroll cost to a company is £40,000. What are the accounting entries?

• DR Wages Expense £40,000

  CR Wages Control £40,000

• DR Wages Control £40,000

  CR Bank £40,000

• DR Wages Control £40,000

  DR Wages Expense

• DR Bank £40,000

  CR HMRC £40,000

What is the balance on the receivables ledger control?

Sales = £12,000

Receipts from customers = £4,000

Contra = £1,000

Irrecoverable debts = £500

• £6,500

• £14,500

• £8,500

• £9,500