Accounting Multiple Choice Question – 7 March 2020

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

Accounting

Given the following information, what is the balance on the creditors control account as at 31 December?

  • Credit balance on the creditors control account at 1 January – £4,600
  • Transactions for the period 1 January to 31 December £1,000
  • Discount received Credit purchases £54,000
  • Credit purchases returns £6,000
  • Refunds received from suppliers £2,000
  • Payments to suppliers £39,000
  • Balance in creditors ledger set off against debtors ledger £1,000

Select ONE answer:

  1. £8,600
  2. £9,600
  3. £12,000
  4. £13,600

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 4

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

Answer 4:

Creditors
Dr Discount Received £1,000
Dr Returns Outwards £6,000
Dr Bank £39,000
Dr Debtors £1,000
Dr Balance c/d £13,600
Dr Total £60,600
Cr Balance b/d £4,600
Cr Purchases £54,000
Cr Bank £2,000
Cr Total £60,600

 

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Author: stuart001uk2014

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

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