Accounting Multiple Choice Question – 12 March 2020

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

Accounting

The following information relates to a firm’s most recent accounting period.

  • Creditors at 1 January £5,000
  • Transactions for the period 1 January to 31 December
    • Discount received £500
    • Credit purchases £60,000
    • Payments to suppliers £54,000
    • Cash purchases £7,000
    • Returns outwards £3,500

The balance on the firm’s creditors control account at 31 December was?

Select ONE answer:

  1. £1,000
  2. £7,000
  3. £8,000
  4. £13,000

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:

Cash purchases are not relevant to the creditors control account

Creditors
Dr Discount Received £500
Dr Returns Outwards £3,500
Dr Bank £54,000
Dr Debtors £0
Dr Balance c/d £7,000
Dr Total £65,000
Cr Balance b/d £5,000
Cr Purchases £60,000
Cr Bank £0
Cr Total £65,000

 

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Author: stuart001uk2014

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

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