In simple terms, a contra entry denotes:

Knowledge Check: Control Accounts and Reconciliations

Quiz
•
Other
•
University
•
Hard
Shekinah Debra
Used 1+ times
FREE Resource
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
sales are made to, and purchases bought from, the same company.
a customer returns some goods.
a cheque payment is made to a supplier for exactly one invoice.
an invoice has been incorrectly entered.
2.
MULTIPLE SELECT QUESTION
30 sec • 1 pt
How would an irrecoverable debt be recorded in the general ledger, ignore sales tax?
Dr Bank Cr Payables
Dr Bank Cr Receivables
Dr Receivables Cr Irrecoverable debt expense
Dr Irrecoverable debt expense Cr Receivables
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following statements is true? i. A contra will be a debit to the receivables ledger control account. ii. An irrecoverable debt will be a credit to the receivables ledger control account. iii. A discount received will be a credit to the receivables ledger control account. iv. A discount allowed will be a credit to the receivables ledger control account.
All of them
ii only
ii and iv
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
When can VAT be recovered on an irrecoverable debt?
As soon as the debt becomes irrecoverable.
When the customer was due to pay.
After six months have elapsed.
When the bank says so.
5.
MULTIPLE SELECT QUESTION
30 sec • 1 pt
If a contra is recorded in the Payables, what is the correct treatment of the opposite entry?
Dr Payables
Dr Receivables
Cr Bank
Cr Receivables
6.
OPEN ENDED QUESTION
3 mins • 1 pt
The Payables ledger control account shows a balance of £1,110,456 and the subsidiary ledger totals £1,110,856. Which of the following is likely to have caused the difference?
Evaluate responses using AI:
OFF
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The balance on the sales ledger control account is currently £10,000. The following errors have been identified: (i) The sales day book was overcast by £200. (ii) Discounts allowed of £80 have only been accounted for in the subsidiary ledger. (iii) A credit note of £60 has been entered into the debit side of the individual receivables account. What is the balance on the sales ledger control account following these corrections?
£9,800
£9,720
£9,660
£9,600
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