Unit 1

Question 1

What are 4 ways you could identify errors in an unbalanced trial balance? RR

Answer 1

That the columns are correctly totalled.
The balances have been correctly copied over to the trial balance.
Check the bookkeeping entries since the last trial balance.
Check to see if the difference is divisible by 9, if so look for errors where numbers have been transposed (e.g. £69 entered as £96 = £27 difference, divisible by 9).

Question 2

What 4 things will be used to make sure a supplier payment was the right amount? RR

Answer 2

Payable ledger account, invoices, credit notes & statement of account

Question 3

What are 3 advantages of using a digital bookkeeping system? RR

Answer 3

Processes recurring entries
Saves time
Reduces errors and omissions

Question 4

What are 3 disadvantages of using a digital bookkeeping system? R

Answer 4

Makes duplication of automated and manual entries possible
Can create errors when the amount or frequency of a recurring entry changes
Automatically balances but doesn’t mean the entries are automatically correct

Question 5

How do you calculate the Gross amount from VAT? WR

Answer 5

VAT/12 x 120 = Gross amount