Month: November 2021

At the end of year 1, a company had a debit balance of £770 on its Rent Payable account.

Payments for rent in year 2 totalled £10,700 and at the end of the year rent prepaid was £1,280.

How much rent was charged against profit in year 2?

Select ONE answer:

1. £8,650
2. £10,190
3. £10,700
4. £11,210

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==> +£770 + £10,700 – £1,280
3. Not correct
4. Not correct

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

A business makes a provision for doubtful debts equal to 5% of its debtors.

At 31 March 2020 net debtors were shown in the Balance Sheet as £17 100.

At 31 March 2021 the balance on its Sales Ledger Control account was £19 000. In the year ended 31 March 2021 a bad debt of £800 had been written off.

How much should be debited in the Profit and Loss Account for the year ended 31 March 2021 for the provision for doubtful debts?

Select ONE answer:

1. £10
2. £50
3. £55
4. £95

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 journal entry ‘Debit Subscription Income, Credit Creditors’ was made in the accounting records of a golf club.

What does this represent?

Select ONE answer:

1. Membership subscriptions owed by members
2. Membership subscriptions received by cheque
3. Membership subscriptions received in advance
4. Membership subscriptions refunded to members

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 company has completed arrangements for the closure of part of its business next year.

What should the company create in this year’s accounts for the closure costs?

Select ONE answer:

1. a contingency
2. a liability
3. a provision
4. a reserve

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.

You are given the following invoice information concerning the purchase of a van by a local business.

• purchase price – £13 000
• delivery charge – £500
• sign writing – £200
• road tax – £200
• tank of fuel – £50

How much should be debited to the NCA motor van account?

Select ONE answer:

1. £13,500
2. £13,700
3. £13,900
4. £13,950

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 ==> £13,000 + £500 + £200
3. Not correct
4. Not correct

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