ACCA FA Reconciliations, Trial Balance & Errors Practice Questions
Reconciliations, Trial Balance & Errors makes up 6 of every 50 questions on a Tigertest ACCA FA practice test. Here are 10 of the 24 questions on it, each with the answer and the reason.
Updated by the Tigertest team. Based on ACCA's FA syllabus and study guide for 2026-27, with IFRS 18 formats. Original Section A style questions; Section B not included. Not affiliated with ACCA.
1. The cash book shows $3,860 in the bank. Bank charges of $45, a dishonoured customer cheque of $520 and a credit transfer of $1,170 from a customer have not been entered. The corrected cash book balance is:
- A.$5,030
- B.$4,465
- C.$3,295
- D.$5,595
Answer: B. Items on the bank statement but not in the cash book are entered: $3,860 - $45 - $520 + $1,170 = $4,465.
2. The corrected cash book shows $7,215 in the bank. Unpresented cheques total $2,940 and outstanding lodgements $1,385. The bank statement balance is:
- A.$11,540
- B.$7,215
- C.$5,660
- D.$8,770
Answer: D. The bank has not yet paid the cheques or received the lodgements, so its balance is $7,215 + $2,940 - $1,385 = $8,770.
3. The bank statement shows that a credit customer's cheque, already banked and recorded, has been dishonoured. The entry in the business's books is:
- A.Dr Receivables, Cr Bank
- B.No entry, as it is a timing difference
- C.Dr Bank, Cr Receivables
- D.Dr Irrecoverable debts, Cr Bank
Answer: A. The money has left the bank account again and the customer once more owes the amount, so the receipt is reversed. It is written off only if it later proves irrecoverable.
4. The bank statement shows an overdraft of $1,640. Cheques of $890 are unpresented and a lodgement of $2,300 is outstanding. The correct cash book balance is:
- A.Overdrawn by $3,050
- B.$4,830 in hand
- C.Overdrawn by $230
- D.$230 in hand
Answer: C. Start at -$1,640, deduct unpresented cheques and add the outstanding lodgement: -$1,640 - $890 + $2,300 = -$230, an overdraft of $230.
5. Bank reconciliations are prepared mainly to:
- A.Value receivables at the year end
- B.Prepare the sales tax return
- C.Find errors and omissions in the records
- D.Work out interest owed to the bank
Answer: C. Comparing the cash book with the bank statement reveals unrecorded items, errors by either party and timing differences, giving confidence in the bank balance.
6. The bank balance reported in the financial statements is:
- A.The corrected cash book balance
- B.The uncorrected cash book balance
- C.The average of the two balances
- D.The bank statement balance
Answer: A. After unrecorded items and errors are put right, the cash book shows what the business really has. The bank statement still includes timing differences.
7. The payables ledger control account shows $48,370 but the list of supplier balances totals $47,620. Which error explains the difference?
- A.A $750 debit balance listed as a credit
- B.A $750 invoice left out of the control account
- C.A $375 payment posted twice in the control account
- D.A $750 invoice left off a supplier's account
Answer: D. The control account is $750 higher. An invoice in the control account but missing from the supplier's account does that. The other errors would make the control account lower than the list.
8. The payables control account shows $26,480. A $1,200 credit note from a supplier was not entered in it, and the purchases day book was overcast by $300. The corrected control account balance is:
- A.$25,580
- B.$24,980
- C.$27,980
- D.$27,680
Answer: B. Both errors overstate payables: the credit note reduces the amount owed, and the overcast inflated credit purchases. $26,480 - $1,200 - $300 = $24,980.
9. A trial balance is extracted before any year-end adjustments are posted. Which inventory figure does it contain?
- A.No inventory figure at all
- B.Opening inventory
- C.Closing inventory
- D.Both opening and closing inventory
Answer: B. The inventory account still holds last year's closing figure, this year's opening inventory. Closing inventory is counted and posted afterwards, as Dr Inventory, Cr Cost of sales.
10. Which error would not cause the trial balance totals to disagree?
- A.Figures transposed on one side only
- B.Both sides posted as debits
- C.A one-sided entry
- D.An error of principle
Answer: D. An error of principle, such as posting an asset to an expense account, still has equal debits and credits. The other errors upset the balance.
Practice all 24 reconciliations, trial balance & errors questions, and the rest of the 200-question bank, in the free ACCA FA training sets. Questions you miss come back until you have mastered them.
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