Day: September 22, 2018

Accounting Multiple Choice Question – 22 September 2018

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

In the case of a garage which deals with the public, which of the following double-entries is the correct way to record the lodgement of hire purchase commission received as a result of selling cars to customers ………..?

Select ONE answer:

  1. Account to Debit Bank / Account to Credit Sales
  2. Account to Debit Sales / Account to Credit Bank
  3. Account to Debit Bank / Account to Credit Commission
  4. None of the above

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 – Only the sale of “goods” should be recorded in the sales account as a credit. There should be a separate account for hire purchase commission.

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