Accounting Multiple Choice Question – 16 February 2024

In relation to books of original or prime entry and double entry bookkeeping for an entity which is registered for VAT, which one of the following statements is correct?

Select ONE answer:

1. The payables ledger column in the cash payments book is debited to the purchases account in the nominal ledger
2. Purchases and VAT in the purchases daybook are recorded in the nominal ledger as debit entries to the purchases and VAT accounts respectively and as a credit entry in the payables control account
3. The cash receipt recorded in the petty cash book when the petty cash is topped up is recorded as a debit entry in the main cash book
4. VAT recorded in the cash book in respect of purchases is credited to the VAT 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

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