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
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?
Select one alternative:
- $19,790 cr
- $34, 790 cr
- $34,790 dr
- $19,790 dr
2.
P plc uses the FIFO (first in, first out) method for valuing inventory.
During the year ended 31 December 2019 it had the following transactions:
01.1.19opening inventory 4,000 units at $50
15.1.19sold 3,200 units at $77
31.3.19purchased 3,500 units at $52
30.4.19sold 4,000 units at $77
30.9.19purchased 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 of P plc?
Select one alternative:
- $25,000
- $26,000
- $27,000
- $38,500
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?
Select one alternative:
- 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
Please let me know the answer and reason.
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