Reference no: EM132559764
Question 1 - The initial balances whilst performing a bank reconciliation to the 31 January 2020 are shown below:
Balance per general ledger $5,870 dr (on general ledger)
Bank balance bank statement $35,060 cr (on bank statement)
On investigation, the following items are discovered:
1. $600 and $480 direct debits have been omitted from cash book
2. $270 of unpresented cheques paid to suppliers
3. $15,000 of lodgements from customers paid into bank were recorded as payments to suppliers in cash book.
What should be the correct balance per cash book after correcting errors above?
$19,790 cr
$34, 790 cr
$34,790 dr
$19,790 dr
Question 2 - During the year ended 31 December 2019 it had the following transactions:
01.1.19 opening inventory 4,000 units at $50
15.1.19 sold 3,200 units at $77
31.3.19 purchased 3,500 units at $52
30.4.19 sold 4,000 units at $77
30.9.19 purchased 2,000 units at $54
31.10.18 sold 1,800 units at $77
At 31 December 2019 what is the correct value for the closing inventory?
$25,000
$26,000
$27,000
$38,500
Question 3 - A business sells $100 worth of goods to a customer, the customer pays $50 in cash immediately and will pay the remaining $50 in 30 days' time.
What is the double entry to record the purchase in the customer's accounting records?
Debit purchases $100, credit payables $50, credit cash $50
Debit payables $50, debit cash $50, credit purchases $100
Debit purchases $100, credit cash $100
Debit cash $50, credit payables $50, credit purchases $50