Day: May 7, 2022

A business provided the following information about motor expenses for the year ended 31 December 2021.

• prepaid at 1 January 2018 – £975
• accrued at 1 January 2018 – £650
• bank payments during the year – £4,875
• prepaid at 31 December 2021 – £1,175
• accrued at 31 December 2021 – £545

What was the motor expense to be included in the income statement for the year ended 31 December 2021?

Select ONE answer:

1. £3,920
2. £4,570
3. £5,180
4. £5,830

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 ==> £975 + £4,875 + £545 – £650 – £1,175
3. Not correct
4. Not correct

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