Day: May 26, 2024

All Elmo’s sales and purchases carry VAT at 17.5%.

A customer has just returned goods sold for £230 plus VAT.

The double entry for this transaction is?

Select ONE answer:

1. Debit Receivables control £270.25, Credit VAT control £40.25, Credit Sales £230.00
2. Debit Sales £270.25, Credit Receivables control £270.25
3. Debit Sales £230.00, Debit VÁT Control £40.25, Credit Receivables control £270.25
4. Debit Receivables control £230.00, Debit VAT control £40.25, Credit Sales £270.25

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 –  Debit Sales £230.00, Debit VAT Control £40.25, Credit Receivables control £270.25
4. Not correct

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