Month: November 2020

The balance at bank in Lucy’s cash book at 30 June is £24,920 debit.

However, a cheque for £28,940 received from Alex and a cheque for £3,480 paid to Michelle appear in the cash book but not on the bank statement.

Bank charges of £9,000 have not been entered in the cash book.

What is the balance shown on the bank statement at 30 June?

Select ONE answer:

1. £1,620 credit
2. £4,340 debit
3. £5,580 credit
4. £5,580 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 2

1. Not correct
2. Correct = £24,920 – £9,000 – £28,940 + £3,480 
3. Not correct
4. Not correct

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

A trial balance does not balance and a Suspense account is opened.

Subsequently the following errors are found and the Suspense account is cleared.

1  A sales invoice for £1,240 had been omitted from the books.
2  Rent paid of £2,600 was entered correctly in the cash book but incorrectly as £6,200 in the Rent account.
3  The purchases journal was undercast by £1,980.

What was the original balance on the Suspense account?

Select ONE answer:

1. £1,620 credit
2. £4,340 debit
3. £5,580 credit
4. £5,580 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 1

1. Correct – (2) £6,200 – £2,600 – (3) £1,980
2. Not correct
3. Not correct
4. Not correct

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

Accountants prefer the commercial reality of a transaction to a strictly legal approach.

This is an example of…?

Select ONE answer:

1. consistency.
2. materiality.
3. prudence.
4. substance over form.

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

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

Stock which cost £2,400 has been damaged. It would have sold for £3,600 when perfect. It can be sold for £3,400 if repairs are undertaken at a cost of £1,200. To replace the stock would cost £2,000.

At what value should the damaged stock be shown in the final accounts?

Select ONE answer:

1. £2,000
2. £2,200
3. £2,400
4. £3,600

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 2

1. Not correct
2. Correct – £3,400 – £1,200
3. Not correct
4. Not correct

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

The accountant of a computer software business has decided not to include subscriptions owing by customers in the Balance Sheet at the year-end.

Which accounting concept is being applied?

Select ONE answer:

1. accruals
2. going concern
3. money measurement
4. prudence

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

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