Day: May 27, 2024

A supplier sends you a statement showing a balance outstanding of £14,350.

Your own records show a balance outstanding of £14,500.

The reason for this difference could be that?

Select ONE answer:

1. The supplier sent an invoice for £150 which you have not yet received
2. The supplier has allowed you £150 cash discount which you omitted to enter in your ledgers
3. You have paid the supplier £1 50 which he has not yet accounted for
4. You have returned goods worth £150 which the supplier has not yet accounted for

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. Notcorrect
2. Correct –> 1, 3 and 4 would make the supplier’s statement £150
3. Not correct
4. Not correct

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