Accounting Multiple Choice Question – 13 March 2020

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

Accounting

At the start of a financial year, a firm’s gross debtors amounted to £5,000.

At the end of the year, this amount had increased by 20%. During the year £15,000 was received from debtors and discounts totalling £1,000 were allowed to debtors.

Bad debts written off amounted to £2,000 and £4,000 was received from a debtor previously written off as bad.

Credit sales for the year were?

Select ONE answer:

  1. £14,000
  2. £15,000
  3. £19,000
  4. £20,000

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 3

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

Answer 3:

Debtors
Dr Balance b/d £5,000
Dr Bad Debt Recovered £4,000
Dr Sales (Credit) £19,000
Dr Totals £28,000
Cr Bank £15,000
Cr Bank (Bad Debt Recovered) £4,000
Cr Discount Allowed £1,000
Cr Bad Debts £2,000
Cr Balance c/d £6,000 (£5,000 + 20%)
Cr Totals £28,000

 

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Author: stuart001uk2014

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

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