Month: February 2023

A trader, whose purchases are all on credit, does not keep double entry records.

The following information is available:

• opening creditors – £51,660
• payments to suppliers during the year – £212,760
• closing creditors – £56,340

The discount received for the year amounted to £1000.

What were the purchases for the period?

Select ONE answer:

1. £209,080
2. £214,940
3. £217,440
4. £218,440

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 – £212,760 + £56,240 + £1,000 – £51,660 = £218,440

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Which error would affect the balancing of a trial balance?

Select ONE answer:

1. A purchase invoice for £259 was entered in the purchases day book and the creditor’s account as £529.
2. A payment for rent of £250 has been debited in the bank account. It has been entered correctly in the rent account.
3. A sales invoice for £180 was lost, before it could be entered in the sales day book.
4. A sales return of £500 was debited in the debtor’s account and credited to the purchases returns 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.

The total of the balances in the purchases ledger does not agree with the balance on the purchases ledger control account.

It is found that a credit balance of £3,100 on a supplier’s account has been listed as a debit balance.

What is the effect of correcting the error on the total of the purchases ledger balances?

Select ONE answer:

1. £3,100 decrease
2. £3,100 increase
3. £6,200 decrease
4. £6,200 increase

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

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