Accounting Multiple Choice Question – 28 November 2021

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

Accounting
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The following information is extracted from the books of a company.

  • Freehold premises at cost – £150,000
  • Provision for depreciation of freehold premises – £100,000
  • The premises are revalued at – £300,000.

Which entries are required in the company’s books to record the revaluation?

Select ONE answer:

  1. Profit and Loss Account debit £0 / Freehold Premises at Cost account debit £150,000 / Provision for depreciation debit £100,000 / Revaluation Reserve credit £250,000
  2. Profit and Loss Account debit £100,000 / Freehold Premises at Cost account debit £150,000 / Provision for depreciation debit £100,000 / Revaluation Reserve credit £250,000
  3. Profit and Loss Account debit £100,000 / Freehold Premises at Cost account debit £150,000 / Provision for depreciation debit £100,000 / Revaluation Reserve credit £300,000
  4. Profit and Loss Account debit £0 / Freehold Premises at Cost account debit £150,000 / Provision for depreciation debit £100,000 / Revaluation Reserve credit £300,000

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
  2. Not correct
  3. Not correct
  4. Not correct

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Author: stuart001uk2014

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

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