12. Sigma's bank statement shows an overdrawn balance of $38,600 at 30 June 20X5. A check against the company's cash book revealed the following differences: 1 2 3 4 Bank charges of $200 have not been entered in the cash book. Lodgements recorded on 30 June 20X5 but credited by the bank on 2 July $14,700. Cheque repayments entered in cash book but not presented for payment at 30 June 20X5 $27,800. A cheque payment to a supplier of $4,200 charged to the account in June 20X5 recorded in the cash book as a receipt. Based on this information, what was the cash book balance before any adjustments? A $43,100 overdrawn B $16,900 overdrawn C $60,300 overdrawn D $34,100 overdrawn Q13. (2 marks) The plant and machinery cost account of a company is shown below. The company's policy is to charge depreciation at 20% on the straight line basis, with proportionate depreciation in years of acquisition and disposal. PLANT AND MACHINERY - COST 20X5 $ 20X5 $ 1 Jan Balance b/f 280,000 30 June Transfer disposal 14,000 1 Apr Cash 48,000 1 Sept Cash 36,000 364,000 31 Dec Balance c/f 350,000 364,000 What should be the depreciation charge for the year ended 31 December 20X5? A $67,000 B $70,000 C $64,200 D $68,600 Q14. (2 marks) At 1 January 20X5 a company had an allowance for receivables of $18,000 At 31 December 20X5 the company's trade receivables were $458,000. It was decided: (a) To write off debts totalling $28,000 as irrecoverable (b) To adjust the allowance for receivables to the equivalent of 5% of the remaining receivables What figure should appear in the company's statement of profit or loss for the total of debts written off as irrecoverable and the movement in the allowance for receivables for the year ended 31 December 20X5? A $49,500 B $31,500 C $32,900 D $50,900 (2 marks) Q15. A business received a delivery of goods on 29 June 20X6, which was included in inventory at 30 June 20X6. The invoice for the goods was recorded in July 20X6. What effect will this have on the business? 1 2 Profit for the year ended 30 June 20X6 will be overstated. Inventory at 30 June 20X6 will be understated. 3 4 Profit for the year ending 30 June 20X7 will be overstated. Inventory at 30 June 20X6 will be overstated. ABCD Q16. 1 and 2 2 and 3 1 only 1 and 4 Which of the following errors would cause a trial balance not to balance? (2 marks) 1 An error in the addition in the cash book. 2 Failure to record a transaction at all. 3 Cost of a motor vehicle debited to motor expenses account. The cash entry was correctly made. 4 Goods taken by the proprietor of a business recorded by debiting purchases and crediting drawings account. ABCD 1 only 1 and 2 only 3 and 4 only All four items (2 marks)