Lesson 5 Start of lesson Chapter 6/7/8 recap

Calculations on invoices must be checked. If the NET of goods is £55.78, what will be the VAT?

• £11.15

• £11.57

• £11.156

• £9.29

A business will use supplier codes to refer to accounts in the

• General Ledger

• Payables Ledger

• Receivables Ledger

Match the following

• Goods Received Note

• Used by the customer to record receipt of goods and documenting any returns made

• Goods Returns Note

• 
  Sent to the supplier by the customer with the unwanted goods

• Delivery Note

• Lists and accompanies the goods sent to the customer

A supplier duplicates an invoice for goods ordered, the likely effect will be

• 
  
  A decrease in the total amount owing shown on the statement of account

• 
  No effect at all

• An increase in the total amount owing shown on the statement of account

What action should be taken if a discrepancy is found between the supplier's statement and the payables ledger?

• 
  Ignore the discrepancy

• Contact the supplier to resolve the discrepancy

• Adjust the payables ledger without verification

What does BACS mean?

• Bankers Authorised Clearing Service

• Bankers Automated Clearing Services

• 
  Banking Automated Clearing Services

• 
  Banking Approved Cheque Services

Which one of the following shows the correct general ledger entries to record purchase of goods for resale on credit

• Dr PLCA

  Cr Purchases

  Cr VAT

• Dr Purchases

  Cr VAT

  Cr PLCA

• 
  Dr PLCA

  Dr VAT

  Cr Purchases

• Dr Purchases

  Dr VAT

  Cr PLCA

Which of the following is recorded in the purchases day book?

• Petty cash purchases

• Purchase returns

• Credit purchases

• 
  Cash purchases

Which of the following is typically not included in a supplier's invoice?

• 
  Invoice number

• Customer's bank details

• List of purchased items

• 
  Payment terms