AAT L2 Bookkeeping Controls 5

Question 1

A business receives a bank statement showing bank charges of £45 and interest earned of £12 that have not been recorded in the cash book.
After adjusting the cash book, the net effect on the cash book balance is:

Accepted Answer

Decrease of £33

Answer

Increase of £33

Answer

Decrease of £57

Answer

Increase of £57

Question 2

The purchase ledger control account has a credit balance of £22,400. A supplier invoice for £800 was recorded in the individual supplier account but was not posted to the control account. After correction, the control account balance will be:

Accepted Answer

£23,200

Answer

£21,600

Answer

£22,400

Answer

£21,800

Question 3

An aged trade receivables analysis is used to:

Accepted Answer

Monitor how long debts have been outstanding and identify potential irrecoverable debts

Answer

Calculate the depreciation of assets

Answer

Determine the selling price of goods

Answer

Record cash receipts from customers

Question 4

A standing order of £150 per month for rent appears on the bank statement but has not been entered in the cash book. The journal entry to correct the cash book is:

Accepted Answer

Debit Rent £150, Credit Bank £150

Answer

Debit Bank £150, Credit Rent £150

Answer

Debit Rent £150, Credit Suspense £150

Answer

Debit Suspense £150, Credit Bank £150

Question 5

Which of the following is NOT a purpose of control accounts?

Accepted Answer

To replace the need for a trial balance

Answer

To provide a check on the accuracy of the subsidiary ledgers

Answer

To help detect errors and fraud

Answer

To provide total receivables and payables figures for the financial statements

Question 6

A receipt from a customer of £1,250 was correctly entered in the cash book but posted to the sales ledger control account as £1,520. The correcting entry is:

Accepted Answer

Debit Sales Ledger Control Account £270, Credit Suspense £270

Answer

Debit Suspense £270, Credit Sales Ledger Control Account £270

Answer

Debit Sales Ledger Control Account £270, Credit Bank £270

Answer

Debit Bank £270, Credit Sales Ledger Control Account £270