Accounting Multiple Choice Question – 25 December 2019

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

Accounting

A firm records all transactions relating to the expense for both rent and rates in a single ledger account.

At the start of the year there was an accrual in respect of rent of £2,500 and a prepayment in respect of rates of £3,000.

At the end of the year there was rent due of £4,500 and rates prepaid of £3,500. The total expense for both rent and rates for the year was £36,000.

The total amount paid during the year. in respect of both rent and rates, was:

Select ONE answer:

  1. £34,500
  2. £35,500
  3. £36,500
  4. £37,500

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
    Rent & Rates Expense
    Dr Balance b/d (Rates prepaid) £3,000
    Dr Bank £34,500
    Dr Balance c/d (Rent due) £4,500
    Cr Balance b/d (Rent accrued) £2,500
    Cr Profit & Loss (Expense for the year) £36,000
    Cr Balance c/d (Rates prepaid) £3,500
    Totals £42,000
  2. Not correct
  3. Not correct
  4. Not correct

 

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Author: stuart001uk2014

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

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