Fa1 Mock 3
Fa1 Mock 3
Fa1 Mock 3
D. Receipt
Question#8:
Ailsa purchased goods from her supplier and was offered a 3% discount if she paid within 30 days.
Which of the following should Ailsa post to record the discount given by her supplier?
A. Dr Payables Cr Purchases
B. Dr Purchases Cr Payables
C. Dr Payables Cr Discounts received
D. Dr Discounts received Cr Payables
Question#9:
Warren had a positive cash balance of $430.60 in his cash book. When performing a bank
reconciliation he discovered that he had not recorded a standing order payment of $80.
After this error has been corrected what will be the balance both in his cash book and on his bank
statement?
A. Cash book $510.60 Dr Bank statement $510.60 Cr
B. Cash book $510.60 Cr Bank statement $510.60 Dr
C. Cash book $350.60 Cr Bank statement $350.60 Dr
D. Cash book $350.60 Dr Bank statement $350.60 Cr
Question#10:
Which of the following accounts is an expense account?
A. Rent paid
B. Discounts received
C. Ebeneezer (a customer)
D. Kamalar (a supplier)
Question#11:
Shazheena offers a 2% trade discount to all customers whose purchases exceed £1,000. The trade
discount increases to 7% if a customer’s purchases exceed $5,000. She sells goods to Alan with a list
price of $5,200.
What will be the total on the invoice she sends to Alan? (ignore sales tax)
A. $4,940
B. $5,096
C. $4,836
D. $5,086
Question#12:
Which of the following errors would require a suspense account in order for the trial balance to
balance?
A. A debit balance of $7,300 for motor expenses in the trial balance actually related to the
purchases of a motor van
B. The sales day book has been overstated by $3,200
C. A purchase invoice of $562 has been omitted from the books of prime entry
D. Irrecoverable debts expense has been recorded as a credit balance in the trial balance
Question#13:
Which business document authorises a payment to a supplier?
A. Internal cheque requisition
B. Purchase requisition
C. Advice note
D. Remittance advice
Question#14:
Farsa returned some goods to Kerry, a credit supplier, because they were unsuitable.
Which of the following would correctly document the return?
(1) Farsa sends Kerry a debit note
(2) Farsa sends Kerry a credit note
D. Credit notes
Question#34:
Bank purchased items of stationary paying by cheque.
What is the double entry to record this?
A. Dr Petty cash Cr Stationary
B. Dr Stationary Cr Bank
C. Dr Stationary Cr Petty cash
D. Dr Bank Cr Stationary
Question#35:
A suspense account has been opened showing a credit balance of $560 in order to balance the trial
balance.
Which one of the following could be the reason for the suspense account?
A. Opening inventory of $560 omitted from the trial balance
B. Purchase of a van for $560 recorded as a motor expense
C. A bank overdraft of $280 shown as a positive cash balance
D. Receivables recorded in the trial balance as $3,620 instead of $4,180
Question#36:
Bertha had a credit balance of $4,697 on her suspense account. The following errors were then
discovered:
(1) Inventory of $2,672 had been omitted from the trial balance
(2) Capital brought forward of $10,000 had been included on the debit side of the trial balance
(3) A cash payment of $2,600 had been included twice in the cash account
After adjusting for the above errors what is the outstanding balance on the suspense account?
A. $10,031 Dr
B. $14,769 Cr
C. $5,375 Cr
D. $15,231 Dr
Question#37:
At the beginning of May Barbara has a receivables account balance of $42,390. During May she has
the following transactions:
$
Sells goods on credit 12,380
Makes cash sales 3,890
Receives cash from credit customers 8,490
Writes off irrecoverable debts 695
Returns from credit customers 426
What is the balance on Barbara’s receivables account at the end of May?
A. $45,159
B. $49,049
C. $2,769
D. $6,659
Question#38:
Anton is employed at an annual salary of $20,800. He is contracted to work 40 hours per week, 52
weeks a year (including 5 wees paid holiday). If overtime has to be worked the first six hours of
overtime in any week are not paid for. Any overtime in excess of six hours in a week is paid for at
time and a half.
During one week Anton worked 9 hours of overtime.
What will be Anton’s overtime pay for the week?
A. $45
B. $30
C. $135
D. $445
Question#39:
The sales ledger control account had a balance of $32,920 but the list of customer balances totalled
$35,760
Which of the following would explain the difference?
A. A contra of $2,840 with the purchase ledger has not been done in the control account
B. The trade receivables column of the cash receipts book is understated by $2,840
C. A customer balance of $2,840 has been omitted from the list of customer balances
D. The sales day book total is understated by $2,840
Question#40:
Which of the following would normally be on the same side in the trial balance?
A. Receivables and Purchases
B. Sales and Drawings
C. Loan liabilities and Interest expense
D. Payables and wages and salaries expense
Question#41:
Gustav is invoicing a customer for goods with a list price of $8,000. The customer is given:
(1) A trade discount of 10%
(2) A settlement discount of 5% if the invoice is paid within 28 days
The customer is expected to take advantage of settlement discount
How much should the customer pay if payment in full is made in 21 days?
A. $7,200
B. $7,600
C. $6,840
D. $8,000
Question#42:
Nanette works for Piroz and is paid a basic wage of $1,000 a week. Piroz operates the following
scheme:
(1) Each employee gets bonus of $4 for every unit they produce in excess of 2,000 units for the
week
(2) If total production is more than 15% higher than the target production for that week an
additional bonus of 8% of the basic wage for the week is paid to each employee
In week 26 the target set by Piroz was 40,000 units and actual production was 39,200 units.
Nanette produced 2,600 of these.
What is Nanette’s bonus for the week 26?
A. $2,480
B. $3,480
C. $3,400
D. $2,400
Question#43:
The balance on the list of supplier balances of $15,950 does not agree with the purchase ledger
control account. It is subsequently found that a credit note issued by a supplier for $680 was missed
from the list of balances and that the purchase day book was undercast by $1,220
What is the corrected total on the purchase ledger control account?
A. $15,270
B. $16,490
C. $16,630
D. $17,850
Question#44:
Malcolm purchased goods from Wendy with a value of $4,900. He paid cash of $2,900 immediately
and agreed to pay the rest in 30 days.
What is the correct double entry to record this transaction in Wendy’s accounts?
A. Sales Cr $2,900 Cash Cr $2,000 Receivables Dr $4,900
B. Sales Dr $2,000 Cash Dr $2,900 Receivables Cr $4,900
C. Sales Dr $4,900 Cash Cr $2,900 Receivables Cr $2,000
D. Sales Cr $4,900 Cash Dr $2,900 Receivables Dr $2,000
Question#45:
Pavan has a year end of 30 November 20X8. On 30 November 20X8 she buys a car on credit to use
solely in her business.
Which parts of business accounting equation will change as a result of the purchase of the car?
A. Capital and Profit
B. Assets and Liabilities
C. Assets and Profit
D. Capital and Liabilities
Question#46:
Javesh has a basic salary of $3,200 for November. His income tax on the salary is $640 and he pays
state benefit contribution of $290. His employer also pays state benefit contributions of $340 and
pension contributions for Javesh of $160.
How much will Javesh receive as his net pay for November?
A. $2,270
B. $1,770
C. $1,930
D. $2,770
Question#47:
Which one of the following is a reason for preparing a receivables ledger reconciliation?
A. To confirm the accuracy of posting
B. To identify overdue accounts
C. To calculate irrecoverable debts
D. To check the calculation of gross profit
Question#48:
On December 20X8 Pavel received a loan of $5,000 to help finance his business. He paid interest of
5% for the year on 30 November 20X9
Which of the following is the correct treatment for interest expense?
A. Dr Bank Cr Loan
B. Dr Loan Cr Bank
C. Dr Bank Cr Interest expense
D. Dr Interest expense Cr Bank
Question#49:
At the beginning of October Simon has total trade receivables of $26,700. During October he has the
following transactions:
$
Credit sales 75,500
Cash receipts from customers 80,000
Sales returns 700
Irrecoverable debts 2,000
What is the balance on Simon’s trade receivables account at the end of October?
A. $19,500
B. $23,900
C. $28,500
D. $20,900
Question#50:
The following has been extracted from Gordon’s purchase returns day book:
1.