Accounting Multiple Choice Question – 11 September 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Accounting

A school brought a set of computers to be used in the teaching of lessons, and paid for them using a cheque. Which of the following double-entries below is the correct way to record this transaction?

Select ONE answer:

  1. Account to Debit Computer / Account to Credit Bank
  2. Account to Debit Bank / Account to Credit Computer
  3. Account to Debit Cash / Account to Credit Computer
  4. Account to Debit Computer / Account to Credit Cash

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 1 – This is the correct double entry record when a school buys the computers and pays for the asset by using a cheque. Answer 2 – would be when the school then sold the computers to a third-party and were paid by a cheque.

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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