Month: August 2019

During the month of March, a firm which wishes to maintain a petty cash float of £200, paid £146 out of petty cash.

How much should it reimburse to the imprest at the end of the month?

Select ONE answer:

1. £54
2. £146
3. £200
4. £254

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

1. Incorrect – A Cash sales should be recorded in the cash book (or cash receipts book).
2. Correct – By always reimbursing the amount paid out during a period, the float (imprest) will always be restored to the amount on hand at the beginning of the period.
3. Incorrect – Goods sold on credit should be recorded in the sales journal.
4. Incorrect

 

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

If small cash payments are initially recorded in a Petty Cash Book, rather than being recorded directly into the general ledger, there will be . . .

Select ONE answer:

1. more entries in the general ledger.
2. fewer entries in the general ledger.
3. the same number of entries in the general ledger.
4. no entries in the general ledger in respect of petty 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 2

1. Incorrect – A Cash sales should be recorded in the cash book (or cash receipts book).
2. Correct – There will be fewer entries in the general ledger because several transactions involving petty cash will be grouped in the petty cash book and then posted, as a single total, to the general ledger.
3. Incorrect – Goods sold on credit should be recorded in the sales journal.
4. Incorrect

 

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

Which of the following should be recorded in the Journal?

Select ONE answer:

1. Cash sales.
2. Fixtures bought on credit.
3. Goods sold on credit.
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

1. Incorrect – A Cash sales should be recorded in the cash book (or cash receipts book).
2. Correct
3. Incorrect – Goods sold on credit should be recorded in the sales journal.
4. Incorrect

 

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

The Journal is . . .

Select ONE answer:

1. A part of the double-entry system of accounting.
2. used to record cash transactions only.
3. not part of the double-entry accounting system.
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

1. Incorrect – The journal is a book of original entry, from which figures are posted to the double-entry accounting system.
2. Incorrect – Cash transactions are recorded in the cash book (or cash receipts book).
3. Correct
4. Incorrect

 

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

The total of credit notes issued to customers recorded in the Returns lnwards Journal is posted to . . .

Select ONE answer:

1. the debit side of the returns inwards account in the nominal (general) ledger.
2. the credit side of the sales account in the nominal (general) ledger.
3. the debit side of the sales account in the nominal (general) ledger.
4. the credit side of the returns inwards account in the nominal (general) ledger.

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 1

1. Correct
2. Incorrect – Sales returns (returns inwards) should be recorded in the returns inwards account.
3. Incorrect – Sales returns (returns inwards) should not be offset against sales in the sales account, as showing the two amounts separately provides better information about what has actually happened.
4. Incorrect – Returns inwards (goods being sent back by customers) are the opposite of sales (goods being sent to customers). As sales are recorded as a credit in the sales account in the double-entry accounting records, returns inwards must be recorded as a debit.

 

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

The total of all credit notes received by a firm during a particular period and recorded in its Returns Outwards Journal for that period should be posted to . . .

Select ONE answer:

1. the credit side of the returns outwards account in its nominal (general) ledger.
2. the debit side of the returns outwards account in its nominal (general) ledger.
3. the credit side of the purchases account in its nominal (general) ledger.
4. the debit side of the purchases account in its nominal (general) ledger.

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 1

1. Correct
2. Incorrect – Returns outwards (goods going back to suppliers) are the opposite of purchases (goods coming in from suppliers). As purchases are recorded as a debit in the purchases account in the double-entry accounting records, returns outwards must be recorded as a credit.
3. Incorrect – Purchases returns (returns outwards) should not be offset against purchases in the purchases account, as showing the two amounts separately provides better information about what has actually happened.
4. Incorrect – As per answer B above, returns outwards must be recorded as a credit and, as per answer C above, returns outwards should not be recorded in the purchases account.

 

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

A wholesaler sold 55 items to a retailer at a price of £20 each, less 20% trade discount.

The retailer subsequently returned twelve of the items.

As a result of this, the retailer should be sent a credit note for …

Select ONE answer:

1. £172
2. £192
3. £240
4. £288

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

1. Incorrect
2. Correct – Cost of items returned = (£20 less 20%) each = £16 each As 12 items were returned, the total cost of all of the items returned is £16 each x 12 = £192
3. Incorrect
4. Incorrect

 

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