Cambridge International AS Level · Accounting (9706)

Reconciliation and verification: Practice Questions

1 multiple-choice questions marked as you go, and 5 written questions with worked solutions. All on Reconciliation and verification.

6 questions20 marksFree, no account

Question 1

1 mark

Which type of error is made when a business transaction is entered in the correct class of account but the wrong person's account?

Question 2

2 marks

Identify two items that would appear in a bank reconciliation statement but would not requires an adjustment in the updated cash book.

Write your answer out first, then check it against the worked solution.

Question 3

4 marks

A business has a credit balance in its Sales Ledger Control Account of \(\$12,450\). It was discovered that a sales invoice of \(\$350\) was recorded correctly in the sales journal but posted as \(\$530\) to the customer’s individual account. State the corrected total of the individual sales ledger balances and explain if the Control Account balance must be adjusted.

Write your answer out first, then check it against the worked solution.

Question 4

2 marks

State one type of error that does not affect the balancing of a trial balance and explain why it remains undetected by this procedure.

Write your answer out first, then check it against the worked solution.

Question 5

4 marks

Zahid, a sole trader, maintains a cash book and receives a bank statement at the end of each month. On 30 April 2024, his cash book showed a debit balance of \(\$2,450\). However, his bank statement showed a different balance.

Upon investigation, the following discrepancies were found:
1. A cheque for \(\$420\) issued to a supplier had not yet been presented to the bank.
2. Bank charges of \(\$35\) appeared on the bank statement but had not been recorded in the cash book.
3. A credit transfer of \(\$150\) from a customer was received in the bank but not entered in the cash book.

(a) Calculate the updated cash book balance at 30 April 2024.
(b) State one reason why it is important for a business to reconcile its bank statement with its cash book.

Write your answer out first, then check it against the worked solution.

Question 6

7 marks

At the end of the financial year, the purchases ledger control account of a company had a credit balance of \(\$8,900\). The schedule of balances from the purchases ledger totaled \(\$9,240\).

The following errors were found:
1. A payment of \(\$450\) to a supplier had been entered in the cash book but was not posted to the supplier's personal account.
2. The purchases journal was overcast by \(\$200\).
3. A contra entry of \(\$110\) with the sales ledger had been recorded in the control account but not in the personal accounts.

(a) Calculate the corrected balance for the purchases ledger control account.
(b) Calculate the corrected total for the schedule of personal account balances.
(c) Briefly explain one limitation of using control accounts for verification.

Write your answer out first, then check it against the worked solution.

* The content provided by thinka is generated by AI and may not always be accurate or up-to-date. Please use it as a supplementary resource and verify with official materials.

You've seen the model answer. Now get yours marked.

This page can show you how a good answer looks. It cannot tell you what your answer was missing. thinka marks your written work against the real mark scheme in about 15 seconds.

Get My Answers Marked Back to the notes

Want more questions like these? Get a fresh set on this topic, graded as you go.