50) The following is the ledger account for the bank, are there any errors in this account?

Bank account

Balance b/fwd

15,000

Receipts from credit sales

10,000

Cash receipts

2,500

Cash purchases

3,100

Payments to credit suppliers

8,500

Wages & salaries expense

4,200

Balance c/fwd

19,200

28,100

28,100

A. Yes

B. No

Question

50) The following is the ledger account for the bank, are there any errors in this account?

Bank account

Balance b/fwd

15,000

Receipts from credit sales

10,000

Cash receipts

2,500

Cash purchases

3,100

Payments to credit suppliers

8,500

Wages & salaries expense

4,200

Balance c/fwd

19,200

28,100

A. Yes

B. No

BlackTom AI · Accepted Answer

The question asks whether there are any errors in the given bank ledger account. We will go through each possible conclusion and examine why it could be true or false.

Option A: Yes
- If we treat the ledger as a standard double-entry bank account, the left (debit) side typically records increases in the bank balance (such as Balance b/fwd, receipts from customers, and cash receipts), while the right (credit) side records decreases (such as cash purchases, payments to suppliers, and expenses paid). Adding the figures on the debit side: Balance b/fwd 15,000 + Receipts from credit sales 10,000 + Cash receipts 2,500 totals 27,500. On the credit side, Cash purchases 3,100 + Payments to credit suppliers 8,500 + Wages & salaries expense 4,200 totals 15,800. The closing balance should be the excess of the debit side over the credit side: 27,500 − 15,800 = 11,700. However, the ledger shows Balance c/fwd 19,200. This discrepancy indicates that the closing balance is not consistent with the entries on the two sides, signaling an error in the account. Therefore, asserting that there is an error (Yes) is correct given the inconsistent closing balance.

Option B: No
- If we claimed there are no errors, we would be stating that the closing balance 19,200 is correctly derived from the transactions recorded. But, as shown above, the arithmetic does not support 19,200 as the balancing figure when summing the Dr and Cr sides as presented. Since the closing balance does not reconcile with the postings, this option would be false. It would ignore the fundamental requirement that the accounts balance, and it would obscure the mismatched totals that reveal an error.

In summary, the entries on the left total 27,500 and those on the right total 15,800, leaving a discrepancy of 11,700 that does not align with the shown balance c/fwd of 19,200. This means there is an error in the ledger as presented, supporting Option A (Yes) and ruling out Option B (No).

LC Financial Accounting & Accountability 32179 MOCK Class Test (timed)

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