Chapter 3 -Recording financial transactions

George purchases goods on credit from Hardeep for £1,000. £100 of these goods are defective and George returns them to Hardeep. What document would Hardeep issue to George in respect of the returned goods?

• Invoice

• Remittance advice

• Credit note

• Delivery note

When a purchase invoice is received from a supplier which two of the following documents would the invoice be checked to?

A Sales order

B Purchase order

C Remittance advice

D Goods received note

E Credit note

• Sales order

• Purchase order

• Remittance advice

• Goods received note

• Credit note

Which two of the following are source documents that contain information that will be entered into a business’s accounting system?

A Goods received note

B Invoice to a customer

C Purchase order to a supplier

D Cheque payment to a supplier

E Delivery note to a customer

• Goods received note

• Invoice to a customer

• Purchase order to a supplier

• Cheque payment to a supplier

• Delivery note to a customer

Which of the following is a source document that would be entered into the accounting system?

• Debit note

• Credit note

• Sales order

• Purchase order

Which of the following best explains the imprest system of petty cash?

• Each month an equal amount of cash is transferred into petty cash.

• The exact amount of petty cash expenditure is reimbursed at intervals to maintain a fixed float.

• Petty cash must be kept under lock and key.

• The petty cash total must never fall below the imprest amount.

On 1 April Amara had a balance of £100 (the imprest amount) in petty cash. At the end of April, she has vouchers totalling £38, a receipt for a refund for stationery of £4 and a note to say that an employee was reimbursed £12 in respect of postage costs but no voucher was issued. How much does Amara need to reinstate her imprest balance at 30 April?

• £34

• £46

• £54

• £66

The petty cash float in a business has an imprest amount of £200. At the end of March vouchers in the petty cash box totalled £136 and the amount of cash remaining in the box was £54. Which of the following explains the difference?

• A petty cash voucher for £10 is missing.

• An employee was given £10 too little when making a petty cash claim.

• Two vouchers totalling £10 were prepared in error in respect of postage stamps purchased.

• A voucher for £10 was put in the box but no payment was made to the employee.

Oscar downloads his bank transaction report for the day. The report shows a cash payment of £412 which the computerised accounting system has not been able to match to a transaction. The unmatched payment is most likely the result of:

• the purchase of a new laptop for £412

• payment to a regular credit supplier for an invoice totalling £412

• a receipt from a credit customer in respect of an invoice for £450 on which a prompt payment discount of £38 was taken

• the payment of net wages of £412 which is consistent with the payroll ledger

The following data has been extracted from the payroll records of Kleen Ltd for the month of February 20X1. The wage expense for the month is:

£
PAYE 17,000
Employer’s NIC 7,500
Employees’ NIC 6,000
Cash paid to employees 50,000

A £50,000

B £56,000

C £74,500

D £80,500

• £50,000

• £56,000

• £74,500

• £80,500

A business has the following payroll costs for a month:

£
Gross pay 112,450
Income tax deducted 15,800
Employees’ national insurance 9,810
Employer’s national insurance 11,200

What is the net amount paid to employees for the month?

• £75,640

• £91,440

• £102,640

• £86,840