Month: January 2023

Alex has not kept proper records for his business.

Between 31 December 2014 and 31 December 2015 his net assets had increased by £30,000.

On 1 January 2015, Alex brought into the business his private car which had cost £12,000, but now has a re-sale value of £8,000.

Drawings for the year ended 31 December 2015 were £16,000.

What was Alex’s profit for the year ended 31 December 2015?

Select ONE answer:

1. £22,000
2. £26,000
3. £34,000
4. £38,000

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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct = £30k + £16k – £8k (Calculating Alex’s profit, which is the increase in net assets, £30 000, plus drawings, £16 000, less the value of the car when introduced, £8000 = £38 000.)

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A club’s treasurer has calculated that there is a deficit in the Income and Expenditure account.

How is this described in the Income and Expenditure account?

Select ONE answer:

1. an excess of expenditure over income
2. an excess of income over expenditure
3. an excess of payments over receipts
4. an excess of receipts over payments

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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Alex the business owner suspects a loss of cash has occurred.

Alex provides the data shown below.

• cash balance at the start of the month – £150
• cash balance at the end of the month – £100
• cash banked – £10,200
• cash sales for the month – £10,500

How much cash has been lost by Alex?

Select ONE answer:

1. £200
2. £250
3. £300
4. £350

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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct = £150 + £10,200 – £100 – £10,500 = = > £350 loss

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What is the normal treatment of life membership subscriptions?

Select ONE answer:

1. credit the income and expenditure account in the year of receipt
2. credit the life membership fund with the year’s receipts and transfer a proportion each year to the income and expenditure account
3. debit the income and expenditure account in the year of receipt
4. debit the life membership fund with the year’s receipts and transfer a proportion each year to the income and expenditure 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.