Month: March 2020

A firm’s creditors at the beginning of an accounting period totalled £2,500 and at the end of the same accounting period, they totalled £4,200.

If the firm paid £32,000 to its creditors during the period, its credit purchases for the period totalled?

Select ONE answer:

1. £30,300
2. £31,600
3. £33,700
4. None of the above

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:

Creditors
Dr Bank £32,000
Dr Balance c/d £4,200
Dr Total £36,200
Cr Balance b/d £2,500
Cr Purchases £33,700
Cr Total £36,200

 

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Given the following information below, calculate the amount owed to a firm by its debtors as at 31 December.

• Debtors at 1 January £11,500
• Credit sales for the period 1 January – 31 December £48,000
• Money received from debtors between 1 January and 31 December £45,000

Select ONE answer:

1. £8,500
2. £14,500
3. £18,500
4. £83,500

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:

Debtors
Dr Balance b/d £11,500
Dr Sales (Credit) £48,000
Dr Totals £59,500
Cr Bank £45,000
Cr Bad Debts £0
Cr Balance c/d £14,500
Cr Totals £59,500

 

This work is licensed under a Creative Commons Attribution 4.0 International License.

Over the course of an accounting period, the amount owed by a firm to its creditors decreased by £20,000.

During the period, the firm’s purchases totalled £950,000, of which 80% were on credit. The firm did not receive any discount from its suppliers during the period.

On the basis of the information, the amount which the firm paid to its creditors during the period was?

Select ONE answer:

1. £740,000
2. £760,000
3. £780,000
4. £930,000

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 – Credit purchases – £950,000 @ 80% = £760,000. Assume that creditors owed £20,000 at the beginning of the year and did not owe anything at the end of the year (a reduction of £20,000 over the course of the period).
4. Not Correct

 

This work is licensed under a Creative Commons Attribution 4.0 International License.

At the beginning of an accounting period, a firm was owed £900 by its debtors. At the end of the same accounting period, the firm’s debtors owed £1,500.

During the period, bad debt of £100 was written off and £5,000 was received from credit customers.

The total of the firm’s credit sales for the period was?

Select ONE answer:

1. £3,700
2. £4,200
3. £5,700
4. £5,900

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 £900
Dr Sales (Credit) £5,700
Dr Totals £6,600
Cr Bank £5,000
Cr Bad Debts £100
Cr Balance c/d £1,500
Cr Totals £6,600

 

 

This work is licensed under a Creative Commons Attribution 4.0 International License.

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

 

 

This work is licensed under a Creative Commons Attribution 4.0 International License.