Principles of bookkeeping controls Question and answers correctly solved 2024
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Bookkeeping
Institution
Bookkeeping
Principles of bookkeeping controls Question and answers correctly solved 2024 Principles of bookkeeping controls - intro to control accounts – notes, Introduction to Record Keeping, Bookkeeping Basics, MED 109 Ch. 29
Receivable's ledger account - - correct answer A list of amounts owed by ...
Principles of bookkeeping controls -
intro to control accounts – notes,
Introduction to Record Keeping,
Bookkeeping Basics, MED 109 Ch. 29
Receivable's ledger account - - correct answer ✔A list of amounts owed by
each individual credit customer at any particular point in time. An asset
account so also starts as a debit.
Receivables ledger control account - - correct answer ✔Total owed by all
credit customers at a particular point in time. This is an asset account, money
owed to you therefore starts as a debit.
Payables ledger control account - - correct answer ✔A list of amounts owed
to all credit supplier at any time, a liability account so begins as a credit. As
this is money owed to others by you.
Payable's ledger account - - correct answer ✔A list of amounts owed to each
individual credit supplier at any time, a liability so therefore opens as a credit.
VAT control account - - correct answer ✔Used to calculate net amounts due
to tax authorities/HMRC.
Purpose of control accounts - - correct answer ✔Control accounts contain
summarised totals of individual transactions affecting their respective ledgers.
Purpose of subsidiary ledgers - - correct answer ✔These are created so a
business can see the amounts owed from each credit customer.
, who is vat monitored by? - correct answer ✔VAT is administered and
regulated by HMRC however not all business's are registered for VAT
therefore cannot charge nor reclaim VAT.
VAT charged is known as - - correct answer ✔VAT charged on sales is
known as output tax/VAT.
VAT suffered is known as - - correct answer ✔VAT suffered on purchases is
known as input tax/VAT.
where will VAT be recorded? - correct answer ✔VAT amounts from sales
and purchases will be recorded in the VAT control account.
when do you receive a VAT rebate - - correct answer ✔If a business has
paid more VAT to suppliers than it has received from customers they will
receive a rebate/refund from HMRC.
how are payments too HMRC displayed - - correct answer ✔Payments to
HMRC in respect of VAT owed are credited to the cash book and debited to
the VAT control account.
how are receipts from HMRC displayed - - correct answer ✔Receipts of VAT
refunds from HMRC are debited to the cash book and credited to the VAT
control account.
how do you know if a rebate or payment is due to/from HMRC? - correct
answer ✔The balance brought down B/D on the VAT control account is
amount owed to HMRC (credit balance) or amount owed by HMRC (debit
side).
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