Accounting Multiple Choice Question – 13 September 2018

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

Which of the following double-entries is the correct way to record money received from shareholders as new capital into the business’s bank account?

Select ONE answer:

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

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

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

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 3 – This is the correct double entry record when a business receives new capital from shareholders into its bank accounts.

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