Day: July 31, 2023

Accounting Multiple Choice Question – 31 July 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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A trial balance at 30 June, before making end of year adjustments, showed:

  • Debit – trade debtors £35,600
  • Credit – provision for doubtful debts £1,160

At 30 June, it was decided to write off a bad debt of £1,600 and to make a provision for doubtful debts equal to 2 % of trade debtors.

What was the total expense in the profit and loss account for bad and doubtful debts for the year ended 30 June?

Select ONE answer:

  1. £680
  2. £1,120
  3. £2,080
  4. £2,280

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 – -> £1,600 – (£1,160 – £680)
  3. Not correct
  4. Not correct

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