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A bank statement shows a credit balance of £8,360.

Comparison with the cash book reveals:

• Cheques totalling £18,725, sent to suppliers, have not been presented.
• Cheques totalling £16,223, received from customers, have not been credited by the bank.
• Bank charges of £124 have not been entered in the cash book.

What is the correct cash book balance?

Select ONE answer:

1. £5,734 credit
2. £5,734 debit
3. £5,858 debit
4. £10,986 credit

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 = 8,360 – 18,725 + 16,223 (you may want to deduct £124 charges from the bank statement, but such charges would already have been taken off on the bank statement before ascertaining the bank balance of £8,360).
4. Not correct

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

A cheque for payment of wages of £214 has been debited to the purchases account as £241.

A suspense account is created.

What are the correcting entries?

Select ONE answer:

1. account to be debited £ – purchases 214 + suspense 27 & account to be credited £ wages 241
2. account to be debited £ – wages 214 & account to be credited £ suspense 214 + purchases 0
3. account to be debited £ – wages 214 + suspense 27 & account to be credited £ purchases 241
4. account to be debited £ – purchases 241 & account to be credited £ wages 214 + suspense 27

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
4. Not correct

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

Alex the trader buys inventory costing £6,000 for resale to his customers.

Alex is entitled to trade discount at 10% and cash discount of 5% from his supplier.

On the same day. Alex discovers that he can only sell the inventory on for £5,000.

Which amount should Alex record as the purchase price of the inventory?

Select ONE answer:

1. £5,000
2. £5,130
3. £5,400
4. £6,000

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 3

1. Not correct
2. Not correct
3. Correct – £6,000 * 0.9 = £5,400
4. Not correct

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