Accounting Multiple Choice Question – 26 January 2024

Alex Trading paid out £12,450 in net wages to his employees.

In respect of these wages, the following amounts were shown in the statement of financial position.

• PAYE payable – £2,480
• National Insurance payable – employees’ £1,350
• National Insurance payable – employer’s £1,500

No other deductions were made.

Employees’ gross wages, before deductions, were?

Select ONE answer:

1. £12,450
2. £27,450
3. £16,280
4. £17,780

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 3

1. Not correct
2. Not correct
3. Correct – 12,450 + 2,480 + 1,350 = £16,280
4. Not correct

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