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Revision 1 Principles of Bookkeeping Controls

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

A statutory deduction from employee's pay

a)

Employer's National Insurance Contributions

b)

Income Tax

c)

Net Pay

d)

Trade Union Fees

2.

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

a)

Faster Payment

b)

Direct Debit

c)

Standing Order

d)

CHAPS

3.

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

a)

Chip and Pin

b)

Standing Order

c)

Bank Transfer

d)

Debit Card

4.

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

a)

a reversal of entries

b)

an error of principle

c)

an error of omission

d)

an error of commission

5.

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

a)

a reversal of entries

b)

an error of principle

c)

an error of omission

d)

an error of commission

6.

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

a)

an error of commission

b)

an error of original entry

c)

a compensating error

d)

a reversal of entries

7.

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.

a)

£500 debit balance

b)

£500 credit balance

8.

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

a)

DR Irrecoverable Debt £600

DR VAT £120

CR Receivables Ledger Control £720

b)

DR Irrecoverable Debt £720

CR Receivables Ledger Control £720

c)

DR Receivables Ledger Control £720

CR Irrecoverable Debts £720

d)

DR Irrecoverable Debt £720

DR VAT £120

CR Receivables Ledger Control £840

9.

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

a)

DR Wages Expense £40,000

CR Wages Control £40,000

b)

DR Wages Control £40,000

CR Bank £40,000

c)

DR Wages Control £40,000

DR Wages Expense

d)

DR Bank £40,000

CR HMRC £40,000

10.

What is the balance on the receivables ledger control?

Sales = £12,000

Receipts from customers = £4,000

Contra = £1,000

Irrecoverable debts = £500

a)

£6,500

b)

£14,500

c)

£8,500

d)

£9,500