Accounting Multiple Choice Question – 8 June 2023

In the books of a sole trader, discounts received of £1,400 have been posted correctly in the suppliers’ accounts but debited in the discounts allowed account.

What are the correcting entries?

Select ONE answer:

1. Dr suspense £2,800  and  Cr discounts allowed £1,400 + discounts received £1,400
2. Dr discounts allowed £1,400 + discounts received £1,400  and  Cr suspense £2,800
3. Dr discounts allowed £1,400  and  discounts received £1,400
4. Dr discounts received £1,400  and  discounts allowed £1,400

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

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