As at 31 December 20X1 the transaction report downloaded from a company's electronic banking system shows an overdraft of £1,500. The transaction report includes bank charges of £30 which have not yet been recorded in the company's cash at bank account. On 29 December 20X1 the company had paid a cheque of £500 to a supplier and received £200 from a credit customer; neither of these items appear in the bank statement.

The overdraft on the bank balance in the company's statement of financial position at 31 December 20X1 should be:

The owner's drawings are shown on the initial trial balance

The closing inventory balance is included in the final trial balance

When performing a reconciliation between the electronic banking system and the cash at bank account, which two of the following would require an entry in the cash at bank account?

Epsilon's cash at bank account at 31 December 20X3 shows a balance of £565 overdrawn. On comparing this with the transaction report downloaded from the electronic banking system, the accountant discovers the following:

1. A cheque for £57 drawn by Epsilon on 29 December 20x3 has not yet been presented for payment
2. A cheque for £92 from a customer, which was paid into the bank on 24 December 20X3, has been dishonoured on 31 December 20X3.

The correct balance in Epsilon's cash at bank account as at 31 December 20X3 is:

Smyths's draft profit for the year is £324,700. After the draft profit was calculated, the following issues were discovered.

Debts of £6,800 should have been written off as irrecoverable at the year end, but the journal entry was not posted.

The accounting system had automatically calculated and recorded depreciation, but the standing data was found to be incorrect. The depreciation rate for cars should have been updated to 20% straight-line at the start of the year, but was left as 25% straight-line in error. The balance on the car cost account at the year end was £24,000. There were no additions or disposals of cars in the year.

What is Smyths's corrected profit for the year after accounting for the above issues?

The following information relates to a bank reconciliation. The balance in the cash at bank account before taking the items below into account was £8,970 overdrawn.

1. Bank charges of £550 on the bank statement have not been entered in the cash at bank account
2. The bank has credited the account in error with £425 which belongs to another customer
3. Cheque payments totalling £3,275 have been entered in the cash at bank account but have not been presented for payment
4. Cheques totalling £5,380 have been correctly entered on the debit side of the cash at bank account but have not been paid in at the bank.

What was the overdrawn balance as shown by the bank statement?

A company's initial trial balance includes a balance of £25,000 in a suspense account. On reviewing the exception report, the bookkeeper identified the amount as a purchase of machinery for £25,000. The amount had been correctly recorded in cash at bank but the other side of the transaction had not been matched by the accounting system.

Which of the following journal entries would remove the suspense account and correctly record the purchase of machinery?

Which two of the following statements about bank reconciliations are correct

Alpha received a statement from its credit supplier Beta, showing a balance to be paid of £8,950. Alpha's payables ledger for Beta shows a balance due to Beta of £4,140.

Investigation reveals the following:

1. A bank transfer made to Beta of £4,080 has not been recorded by Beta
2. Alpha has not adjusted the payables ledger for a £40 cash discount taken by Alpha but not allowed by Beta as payment was not made on time
3. Goods costing £380 returned by Alpha have not been recorded by Beta

What discrepancy remains between Alpha's and Beta's records after allowing for these items?

Peri's customer unexpectedly took advantage of an early settlement discount for £300, paying £3,700 on an invoice which totalled £4,000. Peri's bookkeeper was not sure where to record the discount taken and so posted the following journal entry:

DEBIT Cash at bank £3,700

DEBIT Suspense account £300

CREDIT Receivables £4,000

Which of the following journal entries will remove the suspense account and correctly record the discount

Which three of the following differences between a company's cash at bank account and its bank statement balance as at 30 November 20X3 would feature in the bank reconciliation?

In performing a bank reconciliation exercise, which two of the following require an entry in the cash at bank account?

An error of principle would occur if plant and machinery purchased:

An error of commission is one where:

Two errors have been found in Trim plc's accounts:

1. It was agreed that the credit balance of £420 in Ahmed's payables ledger should be set off against his account in the receivables ledger, but no entries have been made in trade receivables or trade payables to reflect this.
2. The balance of £420 owed by Thomas, a credit customer, is irreoverable, however the journal entry posted to write off the irrecoverable debt was for £180.

The journal that corrects both these errors is:

Olivia's exception report showed £265 received in the business bank account, and correctly recorded in cash at bank, could not be matched by the accounting system and so had been posted to a suspense account. Olivia discovered that the receipt was in respect of a sales invoice for £295 on which the customer had unexpectedly taken a prompt payment discount £30. The customer had paid within the required timeframe and so was entitled to take the discount.

Which of the following journal entries should Olivia now post to correctly record the receipt and clear the suspense account?

Which of the following statements about bank reconciliations are correct?

1. All differences between the cash at bank account and the bank statement must be corrected by means of a journal entry
2. In preparing a bank reconciliation, cheques received from credit customers before the period end but credited by the bank after period end should reduce an overdrawn balance in the bank statement
3. Bank charges not yet entered in the cash at bank account should be dealt with by an adjustment to the balance per bank statement
4. If a cheque received from a credit customer is dishonoured after date, a credit entry in the cash at bank account is required