Category: Accounting

Alex ltd’s capital structure is shown below:

• 700 000 ordinary shares of £0.25 each – £175,000
• 8 % debenture – £160,000

During the year the company made profits before interest of £105k.

The directors wish to distribute as much of the profits as possible by way of dividend.

What is the dividend per share?

Select ONE answer:

1. £0.1317
2. £0.15
3. £0.5268
4. £0.60

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 – £105,000 – (£160,000 * 0.08) then divided by 700,000 shares = 0.1317
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Alex ltd’s receives payment for:

• 20 % of its sales in the month of sale
• 50 % in the following month
• 30 % two months after the month of sale.

The table shows sales for four months.

• January – £180,000
• February – £240,000
• March – £270,000
• April – £220,000

How much were total cash receipts in April for Alex ltd’s?

Select ONE answer:

1. £220,000
2. £228,000
3. £249,000
4. £251,000

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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – (£251,000 * 0.2) + (£270,000 * 0.5) + (£228,000 * 0.3) = £251,000

This work is licensed under a Creative Commons Attribution 4.0 International License.

A business does not keep complete accounting records. The following information is known:

• capital at start of year – £52,000
• capital at end of year – £55,000
• owner’s drawings in year – £13,000
• capital introduced during the year – £25,000

What is the net profit/loss for the year?

Select ONE answer:

1. net loss £9,000
2. net profit £9,000
3. net loss £15,000
4. net profit £15,000

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 – £52 + £25 – £13 – £55 = £9k loss
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

A business has two items in stock which need to be repaired before sale.

• item 1 – Cost £2,160 & Selling Price £2,450 & Repair Costs £190
• item 2 – Cost £3,190 & Selling Price £3,060 & Repair Costs £320

What is the total stock value of these items?

Select ONE answer:

1. £4,900
2. £5,000
3. £5,510
4. £5,640

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 – Item 1 £2,160 + Item 2 (£3,060 – £320) = £4,900 using Lower Of Cost or NRV rule
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

A trader, whose purchases are all on credit, does not keep double entry records.

The following information is available:

• opening creditors – £51,660
• payments to suppliers during the year – £212,760
• closing creditors – £56,340

The discount received for the year amounted to £1000.

What were the purchases for the period?

Select ONE answer:

1. £209,080
2. £214,940
3. £217,440
4. £218,440

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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – £212,760 + £56,240 + £1,000 – £51,660 = £218,440

This work is licensed under a Creative Commons Attribution 4.0 International License.