Month: September 2022

Lucy Ltd has calculated a draft net profit of £56,750.

They then discover the following mistakes:

Discounts Received of £580 and Discounts Allowed of £665 have been recorded on the wrong sides of the respective Discounts Received and Allowed accounts.

What is the corrected draft net profit for Lucy Ltd?

Select ONE answer:

1. £56,580
2. £56,665
3. £56,835
4. £56 920

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 – £56,750 + (£580 * 2) – (£665 * 2)
2. Not correct
3. Not correct
4. Not correct

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

The following information is extracted from the records of a business.

• At 31 December 2014 – Rent paid in advance £4,000
• During the year ended 31 December 2015 – Rent paid £41,000
• At 31 December 2015 – Rent paid in advance £7,000

How much will be debited for rent in the Profit and Loss Account for the year ended 31 December 2015?

Select ONE answer:

1. £34,000
2. £38,000
3. £41,000
4. £44,000

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 2

1. Not correct
2. Correct– – £4k + £41k – £7k
3. Not correct
4. Not correct

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

Inventory has been damaged.

• The Inventory cost £1,200.
• It would have sold for £1,800 when perfect.
• It can be sold for £1,700 if repairs are undertaken at a cost of £600.
• To replace the inventory would cost £1,000.

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

Select ONE answer:

1. £1,000
2. £1,100
3. £1,200
4. £1,800

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– Lower of cost or NRV ==> £1,200 vs (£1,700 – £600)
3. Not correct
4. Not correct

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