Bookkeeping Controls Lesson 3

From the options below, when would we make a journal entry?

• Payroll transactions

• Opening entries (opening balances)

• Correction of errors

• Irrecoverable debts

From the payment options below, which two options will not reduce funds immediately in the payer's bank account?

• Cheque

• Debit card payment

• Credit card payment

• Faster payment

From the errors below, which errors will cause an imbalance in the trial balance?

• Cash sales have been recorded in the cash sales account only

• A payment for rent has been reversed

• A sales invoice has been omitted from the ledger accounts

• A receipt for bank interest received has been recorded as a debit on both bank and interest received accounts

• Purchases have been recorded correctly in the VAT and PLCA, but not the purchases account

Whenever there is an error in the accounting system, a suspense account will always be opened

• True

• False

The total wage expense for an employer is £55,000 - What journal entry will record the wage expense?

• DR Wage Control £55,000 / CR Wage Expense £55,000

• DR Wage Expense £55,000 / CR Wage Control £55,000

• DR Wage Expense £55,000 / DR Wage Control £55,000

• CR Wage Control £55,000 / CR Wage Expense £55,000

• DR Wage Expense £5,500 / CR Wage Control £5,500

Wage expenses are £55,000. Income tax is £7,125 and NI is £3450. Trade Union fee's are £2500. What will be the entry to record net wages?

• DR Wages Control £41,925 / CR Bank £41,925

• CR Wages Control £41,925 / DR Bank £41,925

• DR Bank £41,925 / DR Wages Control £41,925

• CR Bank £41,925 / DR Wages Expense £41,925

DJ Bent has just started a business. The owner has invested £10,000 into the business. Which correct journal entry would be used to record this transaction?

• DR Bank £10,000 / CR Sales £10,000

• CR Sales £10,000 / DR Bank £10,000

• DR Capital £10,000 / CR Bank £10,000

• DR Bank £10,000 / CR Capital £10,000

• DR Drawings £5,000 / CR Bank £5,000

TY Tradings has ceased trading. They owe you £3000 including VAT. What will be the correct journal entry to record this?

• DR Irrecoverable Debts £2500, DR VAT £500, CR SLCA £3000

• DR Irrecoverable Debts £2500, CR VAT £500, CR SLCA £3000

• DR SLCA £2500, CR VAT £500, CR Irrecoverable Debts £3000

• DR Irrecoverable Debts £3000, CR VAT £500, CR SLCA £2500

DR Side of the VAT control account totals £4560. CR side of the VAT control account totals £7255. You also have entries of £200 for purchase returns and sales returns of £450. What is the balance of the VAT control account?

• CR £3345

• DR £2445

• CR £2445

• DR £3345

The b/d balance at the start of the month for the SLCA is £17,500. Payments received from credit customers total £10,000. Credit sales total £2,500. What is the balance of the SLCA at the end of the month?

• £2,500

• £27,500

• £20,000

• £10,000

• £17,500