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Supplementary objective test questions
9.3 In reconciling the receivables ledger control account with the list of receivables
ledger balances of HIJ, the following errors were found:
(1) The sales day book had been overcast by $370
(2) A total of $940 from the cash receipts book had been recorded in the
receivables ledger control account at $490
What adjustments must be made to correct the errors?
A Credit sales control account $820. Decrease total of receivables ledger
balances by $820
B Credit sales control account $820. No change in total of receivables ledger
balances.
C Debit sales control account $80. No change in total of receivables ledger
balances
D Debit sales control account $80. Increase total of receivables ledger
balances by $80
CHAPTER 10 – ACCOUNTING FOR PAYROLL
10.1 An employee has a gross monthly salary of $2,500. In August the tax deducted
was $400, the employee’s social security tax was $120, and the employer’s
social security tax deducted was $200.
What was the charge for salaries to the statement of profit or loss?
$ __________.
10.2 An employee is paid at the rate of $5 per hour. Earnings of more than $105 per
week are taxed at 20%. Employee’s social security tax is 5%, and employer’s
social security tax is 10%. During the week the employee worked 40 hours.
The amounts to be charged to the statement of profit or loss and paid to
the employee are:
Statement of profit or loss Paid to employee
A $171 $151
B $171 $200
C $220 $171
D $220 $151
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