Month: December 2020

The following items appear in the accounts of a manufacturing business.

Which items will be included in the Manufacturing account?

Select ONE answer:

1. 1 and 2
2. 1 and 3
3. 1,2 and 3
4. 1,3 and 4

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 – £60,000 +£7,200 + £47,300
3. Not correct
4. Not correct

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A business sells some of its stock for £100 on credit to a customer.

The stock originally cost £50. Which statement actually reflects the effect of this transaction on the Balance Sheet?

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.

A trial balance at 30 April 2020, before making end of year adjustments, showed:

At 30 April 2020 it was decided to write off a bad debt of £800 and to make a provision for doubtful debts of 2 % of trade debtors.

During the year an amount of £200 was received from a customer relating to a debt that was written off in the year ended 30 April 2019.

What was the total bad and doubtful debts expense for the year ended 30 April 2020? 

Select ONE answer:

1. £360
2. £560
3. £940
4. £1,140

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 – (£17,800 – £800) *0.02 = £340 —> £560 – £340 – £200 + £800
2. Not correct
3. Not correct
4. Not correct

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

The balance on the Sales Ledger Control Account (SLCA) amounting to£43,000 has been entered in the trial balance as £34000.

The difference on the trial balance has been entered in a Suspense account.

Which journal entry is required to correct the error?

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
3. Not correct
4. Not correct

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

Which of the following would prevent a trial balance from balancing?

Select ONE answer:

1. a credit note from a supplier entered in the sales journal
2. a discount allowed posted to the Discounts Received account
3. an invoice entered twice in the sales journal
4. a refund to a customer wrongly posted to Discounts Allowed account

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.