CIMA Exam CIMAPRA17-BA3-1 Topic 1 Question 69 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam

Question #: 69
Topic #: 1

Refer to the exhibit.

The following book-keeping errors were discovered:

1. A cheque for 900 received from a receivable, after deduction of 10% cash discount, had been correctly entered in the bank account and discounts allowed accounts, but only the actual amount received had been entered in the receivable's account

2. An invoice for 940, including VAT at 17.5%, had been correctly recorded in the purchases and VAT accounts, but only the net goods value had been entered into the payable's account.

Which of the following options provides the entries necessary to correct the above errors?

The answer is:

AOption A

BOption B

COption C

DOption D

Show Suggested Answer

Suggested Answer: B

by An at Apr 19, 2023, 01:36 PM

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Ardella

4 days ago

Ah, the joys of bookkeeping. I wonder if the exam makers are trying to trip us up with these 'hidden' errors. Better double-check my work!

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Matt

13 days ago

Wait, did they just say 'VAT at 17.5%'? What is this, a British tax exam? *chuckles* Anyway, better focus on the task at hand.

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Lai

14 days ago

Alright, let's see... Deducting cash discount, entering the right amounts in the right accounts. Sounds like a classic accounting puzzle. Time to put on my thinking cap!

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