Accapaper F3 Financial Accounting Week Four Topic – Part Review Questions
ACCAPAPER F3 FINANCIAL ACCOUNTING WEEK FOUR TOPIC – PART REVIEW QUESTIONS 1.The following control account has been prepared by a trainee accountant: Receivables ledger control account $ $ Opening balance 308,600 Cash received from credit customers 147,200 Credit sales 154,200 Discounts allowed to credit customers 1,400 Cash sales 88,100 Contras against credit balances in payables ledger 4,600 Interest charged on overdue accounts 2,400 Irrecoverable debts written off 4,900 Receivable allowance 2,800 Closing balance 396,800 –––––––– –––––––– 555,500 555,500 ———— ———— What should the closing balance be when all the errors made in preparing the receivables ledger control account have been corrected? A $395,200 B $304,300 C $307,100 D $309,500 (2 marks) 2.Which of the following correctly describes the imprest system of operating petty cash? A The petty cash float is replenished by regular periodic transfers of equal amount B The petty cash float is replenished by periodic transfers of the actual expenditure in the period C All expenses must be supported by a properly authorised voucher D Petty cash is operated outside the business double entry accounting system (2 marks) 3. The following receivables ledger control account for December prepared by a trainee accountant contains a number of errors: Receivables ledger control account $ $ 1 Dec Balance 614,000 30 Dec Credit sales 301,000 31 Dec Cash from credit Discounts allowed 3,400 Customers 311,000 Irrecoverable debts written off 32,000 Interest charged on overdue Contras against amounts due to accounts 1,600 suppliers in payables ledger 8,650 Balance 595,650 –––––––– –––––––– 933,650 933,650 ———— ———— What should the closing balance on the control account be after the errors in it have been corrected? A $561,550 B $568,350 C $578,850 D $581,550 (2 marks) 4.
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