Day: September 2, 2024

Accounting Multiple Choice Question – 2 September 2024

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

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In relation to purchases Alex plc recorded £9,801 in its purchases journal and £107 in its cash book for the year ended 31 January 2024.

The company’s purchases accruals need to be £75 less than at the previous year end, and prepayments need to be £60 less as well.

What is the figure for purchases that should be included in the cost of sales section in Alex plc’s income statement for the year
ended 31 January 2024?

Select ONE answer:

  1. £9,893
  2. £9,923
  3. £9,786
  4. £9,908

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 Purchases Journal £9,801 + Cash Book Purchases £107 + Decrease in Prepayments £60 = Total £9,968 – Cr Decrease in Accruals £75 == > I/S COS Purchases £9,893
  2. Not correct
  3. Not correct
  4. Not correct

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