Acca financial Accounting (FA) Study Text ac ca (FA)

Assuming that the bank statement balance of $38,600 was correct, 

what should the cash book balance be? 

$________ cash at bank/overdrawn* 

*delete which does not apply 

 

 

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Chapter 23 

KAPLAN PUBLISHING

 

477 

 52 

After checking a business cash book against the bank statement, 

which of the following items could require an entry in the cash book?

 

1 Bank 

charges 

2 

A cheque from a customer which was dishonoured 

3 

Cheque not presented 

4 Deposits 

not 

credited 

5 

Credit transfer entered in bank statement 

6 

Standing order entered in bank statement. 

A 

1, 2, 5 and 6 

B 

3 and 4 

C 

1, 3, 4 and 6 

D 

3, 4, 5 and 6 

Correction of errors and suspense accounts 

53  Faulty goods costing $210 were returned to a supplier but this was 

recorded as $120 in the ledger accounts. 

State the accounting entries required to correct the error. 

 

Ledger Account: 

$ 

Debit  

 

Credit  

 

54  A suspense account was opened when a trial balance failed to agree. The 

following errors were later discovered: 

– 

a gas bill of $420 had been recorded in the gas account as $240 

– 

a cash refund of $50 given to a customer had been credited to 

purchases 

– 

interest received of $70 had been entered in the bank account only.