At 1 January 20X9 a company had an allowance for irrecoverable debts of 32,000,000

KHR.

At 31 December 20X9 the company’s trade receivables were 620,000,000 KHR.

It was decided to write off bad debts totalling 40,000,000 KHR and to adjust the

allowance for irrecoverable debts to 5% of receivables (based on past experience).

What figure should appear in the statement of profit or loss for the total of debts written

off and the movement in the allowance for irrecoverable debts, for the year ended 31

December 20X9?

A business has a debit balance on its cash book of 2,020,000 KHR. In reconciling the

cash book balance with the bank statement balance, it is discovered that the bank

statement does not show cheques received and banked from customers for 400,000

KHR or cheque payments to suppliers for 700,000 KHR. The bank statement also

shows bank charges of 60,000 KHR and a direct debit payment of 230,000 KHR. None

of these items have yet been recorded in the ledger.

What is the balance on the bank statement?

A business rents an office but sub-lets some space.

Rent is received quarterly in advance, on 1 January, 1 April, 1 July and 1 October. The

annual rental charge has been 36,000,000 KHR for some time, but it was increased to

42,000,000 KHR from 1 July 20X8.

What amounts for this rent should appear in the trial balance of the business for the

year to 28 February 20X9 after all necessary adjustments have been made?

A business has a debit balance on its receivables control account of 13,240,000 KHR

but the total of the list of receivables ledger balances is 14,500,000 KHR. The following

errors have been discovered so far:

1 The sales returns day book was overcast by 100,000 KHR

2 A discount allowed to a customer of 40,000 KHR had been entered onto the

wrong side of the customer’s account in the receivables ledger

3 A credit balance of 120,000 KHR had been listed as a debit balance when

totalling the list of individual balances.

When these errors have been corrected what is the remaining difference between the

control account total and the total of the list of receivables balances?

What should be the correct balance shown in the cash book?

Which of the following could be used to estimate the profit earned by a business during a period?

At 30 September 20X8, a company's allowance for doubtful debts was 40,000,000

KHR. This represented five per cent of the receivables at that date.

At 30 September 20X9 receivables were 725,000,000 KHR. It was decided to write off

35,000,000 KHR in debts as bad, and to keep the allowance for doubtful debts at five

per cent of receivables.

What is the total expense for bad and doubtful debts that should be recognised in the

trial balance for the year to 30 September 20X9 after all necessary adjustments have

been made?

A telephone bill has been mistakenly debited to the electricity expense account.

What type of error is this?

Sun’s daughter is not involved in the running of the business.

What was the profit of the business for the year to 31 December 20X9?

At 31st December 20X8 a bookkeeper is considering how to account for the following

transactions.

(1) On 1st January 20X8 the business made a loan of 12,000,000 KHR to an

employee, repayable on 1st January 20X9, charging interest at 2% per year. On

the due date she repaid the loan and paid the whole of the interest due on the

loan to that date.

(2) The business has paid insurance of 9,000,000 KHR in 20X8, covering the year

ending 31st August 20X9.

(3) In January 20X9 the business received rent from a tenant of 4,000,000 KHR

covering the six months to 31st December 20X8.

For these items, what total figures should be included in the company’s extended trial

balance at 31st December 20X8 after all necessary adjustments had been made?

The accountant for a business entity has incorrectly recorded sales returns of

1,500,000 KHR as a credit to the accounts receivable control account and also as a

credit to the sales returns account.

The accountant is using a suspense account for the correction of errors.

On finding this error, what accounting entries should he make to correct it?

At 1 July 20X8, a company had prepaid rental costs of 24,500,000 KHR. On 1 January

20X9, the company paid rental costs of 90,000,000 KHR for the year to 30 September

20X9.

On the basis of these figures, what should be included for rental costs in the company’s

trial balance for the year to 30 June 20X9 after all necessary adjustments have been

made?

A business entity makes a bank reconciliation each month. Which of the following items

in a bank reconciliation statement would require an entry to be made in the entity's

ledger accounts?

1 Bank charges

2 A dishonoured cheque that was used as payment by a customer

3 An error by the bank, which charged interest by mistake

4 Lodgements in the cash book that have not yet been included in the bank

statement

Chan buys goods from Tum. On 31 December 20X9, Tum sends a statement of

account to Tum, showing that Tum owes 6,800,000 KHR. Tum’s ledger records show

that he owes Chan 7,500,000 KHR.

Which of the following could fully explain the difference between these two amounts?

A trial balance does not balance. Total debit balances are 478,300,000 KHR and total

credit balances are 465,800,000 KHR.

A suspense account has been opened, for the correction of errors.

Which of the following two errors would, taken together, clear the balance on the

suspense account?

A company uses a rented photocopier machine. The quarterly rental is paid in arrears,

and the amount of the rental depends partly on machine usage during the previous

quarter.

The following payments were made to the photocopier supplier during 20X8.

1 February 3,000,000 KHR

1 May 3,200,000 KHR

1 August 3,400,000 KHR

1 November 3,600,000 KHR

At 1 January 20X8, there were accrued rental charges of 1,800,000 KHR. It is

estimated that the next rental payment on 1 February 20X9 will be 3,900,000 KHR.

What is the figure for rental expense that should be the charge in the trial balance for

the year to 31 December?

All arrears of subscriptions were subsequently received.

What figure for subscription income should be included in the company’s trial balance

for the year to 30 June 20X9?

A receivables account in the receivables ledger has a credit balance. Which of the

following could have caused that credit balance?

At what value should inventory be recognised in the general ledger as at the end of the

financial year?

Which of the following is not necessarily an attribute of an effective bookkeeper?

Which of the following errors would be likely to be identified by performing a

receivables ledger control account reconciliation?

1- Omission of a credit note from the sales returns day book

2- Overcast of the sales day book

3- Transposition error when recording a cheque receipt in the cash book

4- Omission of a balance from the list of receivables ledger balances

What should be the depreciation charge for the year to 31 December 20X9?

During 20X8, a business paid 42,000,000 KHR for insurance covering the period from

1 October 20X7 to 31 March 20X9.

What figures for insurance costs should appear in the business’s trial balance for the

year ended 31 December 20X8 after all necessary adjustments?

The draft financial statements of a company showed a profit of 780,000,000 KHR, but

the trial balance did not agree and a suspense account was opened. The following

errors were then found.

1- Bank charges of 920,000 KHR had not been entered in the accounting records.

2- The receipts side of the cash book had been understated by 1,200,000 KHR.

3- The cost of an item of equipment was 54,000,000 KHR but this had been entered

in the equipment account and in the cash book as 5,400,000 KHR. Depreciation

at the rate of 10% per year (540,000 KHR) has been charged on this equipment.

4- One of the company directors had paid 600,000 KHR to a supplier with his

personal credit card. The payment to the supplier was entered in the supplier’s

ledger account, but the double entry for the transaction was not recorded. The

company does not maintain a payables ledger control account.

Which of the errors will require an entry in the suspense account to correct them?

A business is carrying out its payables ledger control account reconciliation. The

following errors have been discovered:

1- An invoice for 200,000,000 KHR had been omitted from the purchases day book

2- A credit note for 30,000,000 KHR had been included in purchases returns day

book but not posted to the individual supplier’s account

3 -The purchases day book had been overcast by 1,000,000,000 KHR

4- Discounts received had been posted to the wrong side of the discounts account

Which of the errors would require an alteration to the total of the list of balances from

the payables ledger in order to reconcile the list of balances with the corrected control

account total?

A business entity prepared a trial balance which failed to agree. A suspense account

was opened for the difference.

The business has two accounts with a local bank. One of the accounts (Cash account)

is a current account used for day to day transactions. The second account (Loan

account) records the amount owed by the business to the bank under a loan

agreement.

An investigation into the errors found that a receipt of 7,000 KHRm from a customer

had been correctly accounted for to adjust receivables but had been incorrectly

credited to the loan account in the general ledger.

Which of the following journal entries is required to correct these errors?

At 30 June 20X8 a company held a loan from a financial institution of 1,000 KHRm on

which it paid annual interest of 6% on a six-monthly basis, on 30 June and

31 December.

On 30 September 20X8 the company repaid 300 KHRm of the loan.

On 1 April 20X9, the company borrowed a further 600 KHRm at an annual interest rate

of 8% with interest payable on 31 March and 30 September.

What is the company’s interest expense in the year ended 30 June 20X9?

Which of the following statements about inventory are correct?

1 -When assessing net realisable value, items of inventory should be considered

individually, or in groups of similar items. Net realisable value must not be

calculated by taking all items of inventory as a total amount.

2- Inventory should be valued at the higher of net realisable value and cost.

The closing inventory was understated by 240 KHRm for the year ending 31 December

20X8. If this error is not corrected, what will be the effect on the results of the

business?

Double entry bookkeeping results in which of the following balances on ledger

accounts?

Which of the following is not a book of prime entry?

Totals from the purchases day book are recorded periodically in the general ledger as:

A business has a financial year-end of 31 December.

The business needs to estimate the closing inventory value for inclusion in the general

ledger and trial balance for the year ended 31 December 20X8. Unfortunately, it was

unable to carry out a physical count of inventory as at that date.

It carried out a physical count of inventory on 5 January 20X9, and from this produced

a valuation of inventory at this date, all at cost, of 372.8 KHRm.

Between 1 January and 4 January, the following transactions occurred.

1. Goods that had cost 16.2 KHRm were sold for 25 KHRm.

2. A customer returned goods that had been sold to him in November 20X8. These

goods had cost 0.4 KHRm and had been sold to the customer for 0.7 KHRm.

They were returned in good condition and returned to inventory.

3. Goods costing 22.5 KHRm were received from suppliers.

4. The company returned goods to suppliers that had cost 2.0 KHRm when

purchased in December, and has received a credit note for them.

On the basis of this information, what figure should the bookkeeper record in the

general ledger for closing inventory as at 31 December 20X8?

A sole trader took some inventory from the stores for his own personal use. This

inventory cost 750,000 KHRm

Which of the following journal entries should be used to record the transaction?

A trial balance was extracted from the main ledger of a sole trader, and a suspense

account was opened because the total debit and total credit balances did not agree

with each other.

The following errors were subsequently discovered. Which of these would require an

entry in the suspense account to make the correction?

1. The balance on the insurance expense account had been omitted.

2. Discount received was credited in error to the sales account.

3. Purchase returns had been recorded incorrectly by debiting purchase returns and

crediting payables ledger control account.

4. Cash received from a customer was correctly entered in the cash book but

debited to the receivables control account.

When the errors have been corrected, what should be the closing balance on the

account?

Which of the following statements are correct?

1- The balance on the payables control account is included in the trial balance.

2- A payables control account reconciliation provides a means of discovering errors

made in postings to the ledgers

3 -The total of the individual balances on the payables ledger is used to derive the

figure for payables included in the general ledger.

Which of the following items should be included in the cost of finished goods

inventories?

1- The cost of carriage inwards

2- The cost of carriage outwards

3- Import duties and nonrecoverable taxes

A business received a bank statement showing that it was overdrawn by 42,800,000

KHR at 31 December 20X9. The business’s bookkeeper has established the following

differences.

1 -There are bank charges of 400,000 KHR, not yet entered in the cash book.

2- Cheques paid into the bank before 30 December have not yet been credited to

the company’s account. These are for 16,300,000 KHR.

3- Cheque payments entered in the cash book have not yet been presented to the

bank. These are for 28,100,000 KHR.

4- A payment to a supplier of 3,700,000 KHR has been incorrectly recorded in the

cash book as a receipt.

What is the balance on the cash book before any adjustments and corrections are

made?

When a company’s trial balance showed total debit and total credit balances to be

different, a suspense account was opened.

An investigation into the errors made the following discoveries. Discounts received of

7,000,000 KHR had been debited to the discounts received account. In addition, an

entry for the purchase of a motor vehicle (for 30,000,000 KHR) had been entered

correctly in the cash book but had not been posted to the motor vehicles account.

Which two of the following journal entries should be made to correct the errors?

An extended trial balance for the year has been prepared and shows a net profit of

98,500,000 KHR. An error was then discovered. A machine had been purchased for

22,000,000 KHR and the cost had been recorded as a debit in the machine repairs and

maintenance account.

It is the entity’s policy to charge depreciation on machinery at 25% a year using the

reducing balance method, with a full year’s depreciation charge in the year of

acquisition.

What is the profit for the year after making the necessary corrections?

On reconciling the payables control account with the list of payables ledger balances, a

bookkeeper discovered two reconciling items.

(1)- A purchase invoice from Chanlina totalling 158,000 KHR had been entered on

her personal account as 258,000 KHR, but was correctly entered in the

purchases day book.

(2)- The purchases day book had been undercast by 100,000 KHR.

Which of the following corrections would the bookkeeper need to make to deal with the

above?

A purchase return of 100,000 KHR has been correctly posted to the supplier’s account

and to the payables control account but has been debited to the sales returns account.

As a result of this the trial balance would show which of the following?

A company pays rental costs for a printing machine. Rental payments are made in

advance every three months, on 1 March, 1 June, 1 September and 1 December.

Rental costs were 3,600,000 KHR per annum but went up to 4,200,000 KHR per

annum. The first rental payment at the higher charge was on 1 June 20X9.

What is the rental cost for the year to 31 December 20X9?

A company owns a property and rents out a small office in the building to a tenant, who

pays the rental quarterly in advance on 1 February, 1 May, 1 August and 1 November

each year. The rental charge was 9,600,000 KHR per annum but was increased to

10,800,000 KHR from 1 November 20X8.

What is the amount of rental income for the year to 30 June 20X9?

A company pays subscriptions for membership of an industrial association.

Subscription fees are paid six-monthly in advance, on 1 September and 1 March each

year. The annual subscription is 6,600,000 KHR.

What is the accrued expense or the prepaid expense for membership subscription

charges, at the end of the financial on 30 June 20X9?

Which of the following is the correct journal entry for writing off a bad debt?

A company had an allowance for receivables of 19,000,000 KHR at 1 January 20X9.

At 31 December 20X9, total receivables were 526,000,000 KHR. It was decided to

write off debts totalling 36,000,000 KHR and to adjust the allowance for receivables, on

the basis of past experience, to 5% of the remaining receivables.

What amount would be included in the company's trial balance for the year to 31

December 20X9 for the total of debts written off and the movement on the allowance

for receivables after all necessary adjustments had been made?

A company occupies its head office premises under a rental agreement, and rent is

payable quarterly in advance, on 1 February, 1 May, 1 August and 1 November each

year. The annual rent was increased recently from 480,000,000 KHR to 540,000,000

KHR per year, from 1 November 20X8.

What prepayment or accrual for rental expenses would be recognised in the company’s

trial balance at 30 June 20X9 after all necessary adjustments have been made?