A business paid out £23,550 in net wages to its employees

1 A business paid out £23,550 in net wages to its employees. In respect of these wages, the following
amounts were shown in the statement of financial position.
£
PAYE payable 4,620
National Insurance payable – employees' 2,830
– employer's 2,640
What were the employees' gross wages before deductions?
A £28,170
B £30,810
C £31,000
D £33,640
2 Which of the following is a source document that would be entered into the accounting system?
A Debit note
B Delivery note
C Purchase order
D Sales invoice
3 Which of the following best explains the imprest system of petty cash control?
A The system ensures that there is always sufficient petty cash available
B The amount of petty cash in total must never fall below the imprest amount
C Each month an equal amount of cash is transferred into petty cash
D At any time petty cash in the box plus petty cash vouchers equals the imprest amount
4 Nozam maintains an imprest amount of £250 in petty cash. At the end of the month, he has vouchers
totalling £112, a receipt for a refund of £9 and a note to say that an employee took £10 to buy
stationery for which a voucher has not been prepared.
How much does Nozam need to withdraw from the business bank account to reinstate his imprest
balance at the end of the month?
A £113
B £93
C £137
D £127
5 The following data has been extracted from the payroll records of a business for the month of May
20X7. £
Net amount paid to employees 114,000
PAYE 38,000
Employer's NIC 15,600
Employees' NIC 13,400
What is the wage expense for May 20X7?:
A £181,000
B £152,000
C £143,000
D £114,000
6 Fred sells goods on credit to Keira for £2,400. £50 of these goods are defective and Keira returns them
to Fred.
What document would Keira issue to Fred?
A Invoice
B A request for a credit note
C Credit note
D A request for an invoice
7 The following data has been extracted from the payroll records of Scan Ltd for the month of March.
£
PAYE 18,400
Employer's NIC 12,100
Employees' NIC 10,400
Net amount paid to employees 109,000
What is Scan Ltd's wages expense for the month of March?
A £149,900
B £137,800
C £92,300
D £80,200
8 When a purchase invoice is received from a supplier, which of the following documents might the
invoice be checked against?
A Sales order
B Debit note
C Goods received note
D Credit note9 Meghan downloads a transaction report showing her bank transactions for the day. The report shows
a payment of £860, which the computerised accounting system has not been able to match to a
transaction.
Which of the following transactions is most likely to have resulted in the payment of £860?
A A bank transfer received from a credit customer to settle an invoice
B An amount paid to purchase new office furniture
C An amount withdrawn to restore the petty cash to its imprest amount of £100
D A bank transfer paid to an electricity supplier in respect of the monthly invoice received
10 Cooks Ltd has a petty cash float with an imprest amount of £250. At the end of March, vouchers in the
petty cash box totalled £144 and the amount of cash remaining in the box was £86.
Which of the following explains the difference?
A A petty cash voucher for £20 is missing.
B An employee was given £20 too little when making a petty cash claim.
C An employee reimbursed petty cash with £20 in respect of postage stamps used, but no voucher
was prepared.
D A voucher for £20 was put in the box but no payment was made to the employee