Day: March 14, 2024

Accounting Multiple Choice Question – 14 March 2024

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

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Alex Trading’s asset register shows a total carrying amount of £145,600.

The non-current asset accounts in the nominal ledger show a carrying amount of £135,600.

The difference is due to an asset having been disposed of but not having been eliminated from the asset register.

This disposal could have taken place….?

Select ONE answer:

  1. With disposal proceeds of £15,000 and a profit on disposal of £5,000
  2. With disposal proceeds of £15,000 and a carrying amount of £5,000
  3. With disposal proceeds of £15,000 and a loss on disposal of £5,000
  4. With disposal proceeds of £5,000 and a carrying amount of £5,000

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 – If disposal proceeds were £15,000 and profit on disposal is £S,000, then carrying amount must be £10,000, the difference between the asset register figure and the non-current asset account in the nominal ledger
  2. Not correct
  3. Not correct
  4. Not correct

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