Accounting Multiple Choice Question – 24 February 2020

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

At 31 May, according to John Smith’s creditors’ ledger, he owed Alpha Ltd, one of his suppliers, £1,518.

The balance shown on the statement he received from Alpha Ltd did not agree with this. A purchase by John Smith from Alpha Ltd of goods costing £520 was recorded on Alpha’s statement but not in John Smith’s ledger.

A cheque for £250 paid to Alpha Ltd was correctly recorded in John Smith’s ledger but was not shown on the statement from Alpha Ltd.

The balance on the statement from Alpha Ltd was?

Select ONE answer:

  1. £748
  2. £1,248
  3. £1,788
  4. £2,288

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 3

  1. Not correct
  2. Not Correct
  3. Correct
    Balance per John Smith’s ledger £1,518
    Invoice not yet recorded in the ledger £520
    The amount owed by John Smith to Alpha Ltd £2,038
    Cheque paid to Alpha Ltd. not yet recorded by Alpha Ltd -£250
    The balance shown on the statement from Alpha Ltd £1,788
  4. Not correct

 

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