- This topic has 4 replies, 2 voices, and was last updated 3 years ago by
.
- Posts
Dear tutor,there are two questions which I can’t solve,can you help me?
First,13 A bank statement shows a balance of funds in the account.An examination of the bank statement shows a $500 cheque paid in per the cash book but not yet on the bank statement and a $1,250 cheque paid out but not yet on the statement. In addition,the bank statement shows deposit interest received of $50 but this has not yet been recorded in the cash book.
What is the balance per the cash book?
$400 in hand
$500 overdrawn
$1,900 in hand
$1,900 overdrawnHow to calculate it?And why the balance per bank statement is $1,200?
Second:33.Extracts from the preliminary trial balance of Jessie and Co as at 30 September 20X2 are included in the table. Further adjustments are to be made as follows:
(a) No entries have been made in respect of cash of $920 received from Kieran whose balance had been written off last year; and
(b) At 30 September 20X2 an allowance is for 1.5% of the receivables balance.
Debit :Sales ledger control account $90,350Credit:Allowance for receivables (brought forward as at 1 October 20X1) $2,490
Debit:Irrecoverable debts and allowance for receivables expense $1,860
What is the total charge or credit in the statement of profit or loss for receivables? (Do not enter numbers as minus and do not enter commas.)Q13 is a typing mistake by BPP. The question has missed out the balance on the bank statement – it should be given in the question. (If you check the errata sheet on the BPP website using the code in your Revision Kit, then there will probably be a correction to the question).
Q 33: The allowance required at the end of the year is 1.5% x 90,350 = 1,355.25.
There is already an allowance of 2,490 brought forward from last year, so the allowance needs reducing by 2,490 – 1,355 = 1,135 (which will be a credit in the expense account.
There was 920 received from a previously irrecoverable debt so this will also be a credit in the expense account.
There is already a debit of 1,860 on the expense account.
So the final balance is a credit of 1,135 + 920 – 1,860 = $195.
- The topic ‘BPP Mock Exam3’ is closed to new replies.