Accounting Multiple Choice Question – 2 March 2020

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

At the beginning of an accounting period, a firm owed its creditors £15,000.

During the period, the firm’s credit purchases amounted to £87,000 and it paid £94,000 to its creditors.

Assuming there were no other transactions relating to creditors, at the end of the accounting period the firm owed its creditors the sum of?

Select ONE answer:

  1. £7,000
  2. £8,000
  3. £14,000
  4. £22,000

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. Not correct
  2. Correct
  3. Not Correct
  4. Not Correct

Answer 2:

Creditors
Dr Bank £94,000
Dr Balance c/d £8,000
Dr Total £102,000
Cr Balance b/d £15,000
Cr Purchases £87,000
Cr Total £102,000

 

 

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