AQA A-Level Accounting: Verification of accounting records (7127) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

This set covers section 3.4, Verification of accounting records, of the AQA A-level Accounting (7127) specification, version 1.1 (October 2026), for A-level exams from June 2019 onwards. The course is untiered; this section is examined on Paper 1. All businesses and figures are invented.

Before you start, read the study guide or the revision notes. Course hub: AQA A-level Accounting; checklist: printable checklist.

Questions

1. Which one of the following errors would cause the trial balance totals to disagree? [1]

A. A £600 purchase invoice was not entered in the purchases journal. B. Cash sales of £300 were credited to commission received. C. Wages of £1 240, correct in the cash book, were posted to the wages account as £1 420. D. A £820 credit sale was debited to the wrong customer’s account.

2. Prepare journal entries, with narratives, to correct the following errors.

(a) Shop shelving costing £3 600, bought for use in the business, was debited to the purchases account. [2] (b) A credit sale of £1 240 to T Marsh was entered in the sales journal as £1 420. [2]

3. The debit total of a trial balance exceeds the credit total by £540. The bookkeeper thinks this is a transposition error. Explain whether this is possible, and name one other type of error that could cause the difference. [3]

4. On 31 August 2026 the cash book of Lowther Cycles showed a bank overdraft of £1 380. The bank statement showed an overdraft of £1 079. Comparing the two revealed:

• a direct debit for electricity, £245, bank interest charged, £38, and a credit transfer from a customer, £960, all missing from the cash book
• a cheque received for £615, entered in the cash book as £651
• unpresented cheques totalling £1 870
• an outstanding lodgement of £2 210.

(a) Calculate the updated cash book balance. [4] (b) Prepare a bank reconciliation statement at 31 August 2026. [3]

5. Brennan Fabrics provides the following for July 2026.

Item	£
Sales ledger balances 1 July: debit / credit	27 340 / 190
Credit sales	48 760
Cash sales	6 300
Receipts from credit customers	44 815
Discount allowed	920
Sales returns	1 470
Irrecoverable debts written off	680
Customer cheque dishonoured	830
Interest charged on overdue accounts	145
Contra with purchases ledger	1 050
Increase in provision for doubtful debts	400
Sales ledger credit balances 31 July	260

Prepare the sales ledger control account for July 2026. [6]

6. Brennan Fabrics also provides the following for July 2026.

Item	£
Purchases ledger balances 1 July: credit / debit	19 425 / 140
Credit purchases	31 680
Cash purchases	2 900
Payments to credit suppliers	28 960
Discount received	610
Purchases returns	845
Contra with sales ledger	1 050
Interest charged by a supplier on an overdue account	70
Purchases ledger debit balances 31 July	115

Prepare the purchases ledger control account for July 2026. [5]

7. The trial balance of Tarn Valley Deli at 30 September 2026 had debit totals of £95 189 and credit totals of £94 245. The difference went to a suspense account. Draft profit for the year was £28 640. These errors were found.

(i) The purchases journal was overcast by £300. (ii) A receipt of £725 from R Haddad was entered in the cash book but not posted to R Haddad’s account. (iii) Rates of £1 090, correctly entered in the cash book, were posted to the rates account as £1 009. (iv) The owner’s private electricity bill of £360 was paid from the business bank account and debited to the electricity account.

(a) Prepare journal entries to correct the errors. Narratives are not required. [4] (b) Prepare the suspense account. [3] (c) Calculate the corrected profit for the year. [3]

8. For each error, state the effect on the profit for the year and on the statement of financial position.

(a) Closing inventory costing £14 600 was included in the accounts at £16 400. [2] (b) Insurance of £420 paid in advance for next year was charged as an expense of this year. [2] (c) A cheque for £950 from A Lund was credited to the account of A Lunt. [2]

9. The draft statement of financial position of Quarry Lane Florists, a sole trader, at 31 December 2025 showed: non-current assets (carrying amount) £46 500; inventory £8 240; trade receivables £6 900; bank £2 115; trade payables £5 380; accruals £410; net assets £57 965. Capital was £50 000 at 1 January 2025, plus profit £21 965, less drawings £14 000. The trial balance had agreed.

These errors were then found.

1. Goods costing £350 taken by the owner for private use had not been recorded.
2. An irrecoverable debt of £480 had not been written off.
3. Repairs to the delivery van, £1 100, had been debited to the motor vehicles account. Ignore depreciation.
4. A cheque of £640 paid to a supplier had been entered on the debit side of the cash book and the credit side of the supplier’s account.
5. Electricity of £260 owing at the year end had not been accrued.

(a) Prepare a statement of corrected profit for the year. [5] (b) Calculate the corrected figure for each line of the statement of financial position that changes, and show that the corrected statement balances. [7]

10. The owner of a small business says: “Our trial balance agrees, both control accounts agree with the ledgers and the bank reconciliation agrees, so our accounting records contain no errors.” Evaluate this statement. [6]

Answers

1. C – a transposition (debit £1 420, credit £1 240) [1] [1] Examiner insight: B and D (both errors of commission) leave the totals equal; only the exact error type earns the mark.

2. (a) Dr Shop fittings £3 600; Cr Purchases £3 600 [1]. Narrative: purchase of shelving (a non-current asset) wrongly debited to purchases [1]. (b) Dr Revenue £180; Cr T Marsh £180 [1]. Narrative: credit sale entered in the sales journal as £1 420 instead of £1 240 [1]. [4] Examiner insight: A missing narrative loses its mark even when the double entry is right.

3. 540 ÷ 9 = 60, so the difference is divisible by 9 and a transposition in one posting is possible [1], for example a debit of £1 170 posted as £1 710 [1]. It could equally be an unequal posting, an addition error or a partial omission of a £540 credit [1]. [3] Examiner insight: Divisible by 9 is evidence, not proof; a mark is lost for saying the error must be a transposition.

4. (a) −1 380 − 245 − 38 (direct debit and interest) [1] + 960 (credit transfer) [1] − 36 (receipt overstated, 651 − 615) [1] = overdraft £739 [1]. (b)

Lowther Cycles
Bank reconciliation statement at 31 August 2026
                                         £
Balance per bank statement (overdrawn) (1 079)
Add: outstanding lodgement              2 210
                                        1 131
Less: unpresented cheques              (1 870)
Balance per cash book (overdrawn)        (739)

Overdrawn balance shown negative [1]; lodgement added [1]; unpresented cheques deducted to reach (739) [1]. [7] Examiner insight: Own-figure marks usually apply in (b) if a wrong (a) figure is used consistently.

5.

                Sales ledger control account
Balance b/d          27 340 | Balance b/d             190
Credit sales         48 760 | Bank                 44 815
Bank (dishonoured)      830 | Discount allowed        920
Interest charged        145 | Sales returns         1 470
Balance c/d             260 | Irrecoverable debts     680
                            | Purchases ledger
                            |   control (contra)    1 050
                            | Balance c/d          28 210
                     ------                        ------
                     77 335                        77 335
Balance b/d          28 210 | Balance b/d             260

Opening debit balance and credit sales [1]; dishonoured cheque and interest [1]; credit balance c/d on the debit side [1]; receipts, discount and returns [1]; irrecoverable debts and contra [1]; closing debit balance £28 210 with cash sales and the provision excluded [1]. [6] Examiner insight: Including the £400 provision or £6 300 cash sales loses the closing balance mark.

6. Credit side: 19 425 + 31 680 + 70 interest + 115 debit balances c/d = 51 290 [1]. Debit side: 140 b/d + 28 960 payments [1] + 610 discount + 845 returns [1] + 1 050 contra [1]. Closing credit balance = 51 290 − 31 605 = £19 685, cash purchases excluded [1]. [5] Examiner insight: The £115 debit balances are carried down on the credit side; netting them against the credit balances loses the closing balance mark.

7. (a) (i) Dr Suspense 300, Cr Purchases 300 [1]. (ii) Dr Suspense 725, Cr R Haddad 725 [1]. (iii) Dr Rates 81, Cr Suspense 81 [1]. (iv) Dr Drawings 360, Cr Electricity 360 [1]. (b)

                       Suspense account
Purchases          300 | Balance b/d          944
R Haddad           725 | Rates                 81
                 -----                      -----
                 1 025                      1 025

Opening credit balance £944 (95 189 − 94 245) [1]; three correct postings [1]; account closes with totals of £1 025 [1]. (c) 28 640 + 300 (purchases overstated) [1] + 360 (private bill removed from expenses) [1] − 81 (rates understated) = £29 219; error (ii) has no effect on profit [1]. [10] Examiner insight: Putting principle error (iv) through suspense loses the (a) mark and the closing mark in (b).

8. (a) Profit overstated by £1 800 [1]; current assets (inventory) overstated by £1 800 [1]. (b) Profit understated by £420 [1]; current assets understated, as a £420 prepayment is missing [1]. (c) No effect on profit [1]; no effect on total trade receivables, though A Lund’s and A Lunt’s balances are both wrong [1]. [6] Examiner insight: “Profit overstated” with no amount, or with no statement of financial position effect, earns at most one mark.

9. (a) Draft profit 21 965 + 350 goods for own use (purchases reduced) [1] − 480 irrecoverable debt [1] − 1 100 van repairs [1] − 260 electricity accrued [1] = £20 475; error 4 has no profit effect [1]. (b) Non-current assets 46 500 − 1 100 = £45 400 [1]; trade receivables 6 900 − 480 = £6 420 [1]; bank 2 115 − 1 280 = £835, as the reversal doubles the error [1]; trade payables 5 380 − 1 280 = £4 100 [1]; accruals 410 + 260 = £670 [1]; net current assets 15 495 − 4 770 = £10 725, so net assets £56 125 [1]; capital 50 000 + 20 475 − 14 350 drawings = £56 125, which agrees [1]. [12] Examiner insight: The complete reversal changes bank and trade payables by twice £640; using £640 loses both marks but own-figure credit remains for the totals.

10. An agreed trial balance makes addition, partial omission, transposition and unequal posting errors unlikely [1]. It misses commission, complete reversal, compensating, omission, original entry and principle errors; capitalised repairs would overstate profit unnoticed [1]. Control accounts locate errors and deter fraud [1], but an invoice omitted from, or misstated in, a book of prime entry agrees in both [1]. The bank reconciliation checks only the bank column [1]. Conclusion: the checks reduce the risk of error but cannot prove there is none, so the claim is too strong [1]. [6] Examiner insight: “Evaluate” needs a judgement on the owner’s claim; a list of points without a conclusion cannot reach full marks.

Where marks are usually lost

• Posting commission, principle or complete reversal corrections through suspense.
• Correcting a complete reversal with the single amount.
• Including cash sales, cash purchases or the provision for doubtful debts in control accounts.
• Treating an overdraft as a positive balance in a bank reconciliation.
• Giving only the profit effect when the statement of financial position effect is also asked for.
• Not checking that corrected net assets equal corrected capital.

Next steps

• Revision notes and study guide.
• Review the double entry model.
• Go back to the AQA A-level Accounting hub and checklist.
• Try all free 10-minute diagnostics.
• Book a free trial class.

Official syllabus

AQA A-level Accounting (7127) specification, version 1.1, October 2026, A-level exams June 2019 onwards (AQA), section 3.4 Verification of accounting records.