Day: August 28, 2024

Accounting Multiple Choice Question – 28 August 2024

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Alex plc’s income statement for the year ended to 31 January 2024 shows tax expense of £42,560.

In its statement of financial position at that date the tax payable is £23,820.

During the year Alex plc paid the HMRC £40,000 in respect of tax for the year ended 31 January 2024, but subsequently received a refund from the HMRC for £2,680.

As at 1 February Alex plc’s tax opening payable balance in its statement of financial position was?

Select ONE answer:

  1. £18,580
  2. £23,700
  3. £23,940
  4. £29,060

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 == > Dr Bank Payments £40,000 + Bal C/D £23,820 = Total £63,820 – Cr HMRC Refund £2,680 + Tax Expense I/S £42,560 == > Opening Balance B/D £18,580
  2. Not correct
  3. Not correct
  4. Not correct

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