Accounting Multiple Choice Question – 14 September 2018

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

Accounting

If there is a separate sub-ledger account for every debtor and creditor, which of the following double-entries is the correct way to record money paid as a cheque to Pat Smith, who is a creditor of the business?

Select ONE answer:

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

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 4 – This is the correct double entry record when a firm pays money to one of its creditors for an unpaid invoice using a cheque.

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Author: stuart001uk2014

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

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