Exam 5: Double-Entry Bookkeeping 2: Books of Prime Entry, Accounting Systems and Other Double-Entry Applications

The bank balance in the cash book + cash book receipts not yet recorded in the bank statement - cash book payments not yet recorded in the bank statement = the cash balance in the bank statement.

£50,000 cash is received on the disposal of property, plant and equipment. What is the correct double entry to record this cash receipt in the books of account of an organisation?

PAYE and employee's NIC increase the cost of employees' wages and salaries.

Which of the following are deductions from gross pay? Please select all that apply.

The first step in preparing the bank reconciliation is to ensure that all the transactions recorded in the bank statement are also recorded in the cash book.

The total amounts recorded on sales invoices - the total amounts recorded on sales credit notes = the total sales income earned by an entity during a financial period

Hina Limited records a VAT inclusive figure for sales returns of £9,600 for the month of October. All sales are made on credit and VAT is charged at the rate of 20% on the net sales value of each sale. What is the correct double entry to record these sale returns?

Which of the following transactions would you expect to find on each purchase ledger account for each individual supplier? Please select all that apply.

An error of commission arises when:

An error of omission arises when:

Which one of the following is not a function of the purchase day book?

Mansoor's bank statement at 30 September shows a cash balance in the bank of £32,341.61. There is a deduction of £250 for bank charges in the bank statement but not yet recorded in Mansoor's cash book. Cash book receipts paid into the bank but not yet recorded in the bank statement by 30 September total up to £2,494.24 while cash book payments that have not been listed as payments on the bank statement at 30 September add up to £5,875.40. What is the bank balance in Mansoor's cash book at 30 September once any necessary adjustments to the bank balance in the cash book have been made?

Credit notes from suppliers in the purchase returns day book: Please select all that apply.

Books of prime entry: Please select all that apply.

Which one of the following is not a complete reversal of entries error?

An error of principle arises when:

Fran runs a small retail store. During the financial year ended 30 September 2019, Fran's store generated cash sales of £210,329. She paid £62,510 into the business bank account and withdrew £30,000 from cash for her personal living expenses. Cash at 1 October 2018 was £150 and cash at 30 September 2019 was £300. Fran pays cash for her purchases when these are delivered to the store. How much cash did Fran pay for purchases during the financial year ended 30 September 2019?

Debit interest receivable, Credit cash is the correct double entry to record the receipt of interest from the bank.

Debit wages control account, Credit PAYE and NIC control account is the double entry required to record employer's NIC.

In March, Imtiaz Limited made payments of cash from the bank to trade payables for purchases of raw materials of £90,000. The company's suppliers charge VAT of 20% on all raw materials supplied. What is the correct double entry to record this payment of cash to trade payables?