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