Month: August 2020

Lucy bought a computer for £800, and some ink cartridges for £50 to be used in the business. Both of these amounts were debited to the purchases account.

What was the effect of this error on the income statement for the year?

Select ONE answer:

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 – computer should be NCA & ink cartridges should be Expenses
3. Not correct
4. Not correct

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A trader provided the following information.

What was the purchases ledger control account balance on 31 March?

Select ONE answer:

1. £7,000
2. £9,000
3. £11,000
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 1

1. Correct = 4 + 53 – 2-47-1
2. Not correct
3. Not correct
4. Not correct

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

What are the sources of information for entries in control accounts?

Select ONE answer:

1. bank statements
2. books of prime entry
3. ledger accounts
4. sales invoices

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

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

The bank statement of a business showed a bank overdraft of £1,640 on 1 August 2020.

At that date there were uncredited deposits of £380 and un-presented cheques of £460.

What was the cash book balance on 1 August 2020?

Select ONE answer:

1. £1,560 credit
2. £1,560 debit
3. £1,720 credit
4. £1,720 debit

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 = -£1,640 -£460 + £380
4. Not correct

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

Tracey runs a clothing store. She sold a computer with a net book value of £2,000 for £1,800. Cash was received but no entries had been made in any accounts.

What is the effect of correcting this error on the statement of financial position?

Select ONE answer:

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

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