Month: September 2018

What is the balance carried down on the following debtor account on the 31 May ………..?

Select ONE answer:

1. £380 debit
2. £395 credit
3. £395 debit
4. None of the above

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

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This multiple choice question is suitable for Accounting KS5 classes.

The answer is 2 – Total debits £745 – Total credits £350 = difference c/fwd on credit side of £395

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In the case of a garage which deals with the public, which of the following double-entries is the correct way to record the payment, by cheque, of an electricity bill for the current accounting period ………..?

Select ONE answer:

1. Account to Debit Bank / Account to Credit Electricity
2. Account to Debit Electricity / Account to Credit Cash
3. Account to Debit Electricity / Account to Credit Bank
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 – All expenses are recorded as debit entries in the relevant expense account and the bank balance is thus reduced as a result through a credit.

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In the case of a DIY store, which of the following double-entries is the correct way to record the payment of council business rates for the for the current accounting period by cheque ………..?

Select ONE answer:

1. Account to Debit Bank / Account to Credit Rates
2. Account to Debit Rates / Account to Credit Bank
3. Account to Debit Expenses / Account to Credit Bank
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 2 – All expenses are recorded as debit entries in the relevant expense account and the bank balance is thus reduced as a result through a credit.

This work is licensed under a Creative Commons Attribution 4.0 International License.

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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In the case of a sole trader ………..?

Select ONE answer:

1. Earning profit does not affect capital.
2. Earning profit reduces capital.
3. Capital can arise only by earning profits.
4. Earning profit increases capital.

Explain how losses affect capital for a sole trader?:

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

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 4 – Earning profit increases capital.

This work is licensed under a Creative Commons Attribution 4.0 International License.