PRINCIPLES OF ACCOUNTS
Turn over Paper-1
A company’s trial balance failed to agree, the totals being:Debit £815,602Credit £808,420
Which one of the following errors could fully account for the difference?A
The omission from the trial balance of the balance on the insurance expenseaccount £7,182 debit
Discount allowed £3,591 debited in error to the discount received account
No entries made in the records for cash sales totalling £7,182
The returns outwards total of £3,591 was included in the trial balance as a debitbalance
2. Which of the following items could appear on the
side of a Debtors ledger control account?
(1) Cash received from customers(2) Bad debts written off (3) Increase in allowance for doubtful debts(4) Discounts allowed(5) Sales(6) Credits for goods returned by customers(7) Cash refunds to customers
A (1), (2), (4) and (6)B (1), (2), (4) and (7)C (3), (4), (5) and (6)D (5) and (7)3.
A business has compiled the following information for the year ended 31 October 2002:£Opening inventory 386,200Purchases 989,000Closing inventory 422,700The gross profit as a percentage of sales is always 40%
Based on these figures, what is the sales revenue for the year?A £1,333,500B £1,587,500C £2,381,250D The sales revenue figure cannot be calculated from this information
4. Which of the following correctly describes the imprest system of operating pettycash?A
The petty cash float is replenished by regular periodic transfers of equal amount.
The petty cash float is replenished by periodic transfers of the actual expenditure inthe period.
All expenses must be supported by a properly authorised voucher.
Petty cash is operated outside the business double entry accounting system.