Tag: AQA

The wages of staff employed in getting goods into a saleable condition have been debited in the Profit and Loss Account.

What is the effect of this error?

Select ONE answer:

• Gross profit – overstated / Net profit – no effect
• Gross profit – overstated / Net profit – overstated
• Gross profit – understated / Net profit – no effect
• Gross profit – understated / Net profit – understated

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
2. Not correct
3. Not correct
4. Not correct

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

How may net profit be calculated?

Select ONE answer:

1. Closing Capital + Drawings – Additional Capital – Opening Capital
2. Closing Capital – Drawings + Additional Capital – Opening Capital
3. Opening Capital + Drawings – Additional Capital – Closing Capital
4. Opening Capital – Drawings – Additional Capital – Closing Capital

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
2. Not correct
3. Not correct
4. Not correct

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

Motor vehicles purchased for £530 000 at the start of the year have been incorrectly depreciated for the whole year using the straight line method at 10% instead of 25%.

Ledger balances after the entries have been posted:

• motor vehicles at cost £530 000
• provision for depreciation £53 000

Which entries will correct the error?

Select ONE answer:

1. debit Profit & Loss £79 500; credit Provision for Depreciation of Motor Vehicles £79 500
2. debit Profit & Loss £132 500; credit Provision for Depreciation of Motor Vehicles £132 500
3. debit Provision for Depreciation of Motor Vehicles £79 500; credit Profit & Loss £79 500
4. debit Provision for Depreciation of Motor Vehicles £132 500; credit Profit & Loss £132 500

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 I/S Cr B/S Provision ==> £530k * 0.25 ==> £132.5 – £53k ==> £79.5 debit P&L
2. Not correct
3. Not correct
4. Not correct

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

A Suspense account has a balance of £450 debit.

What has caused this balance in the Suspense account?

Select ONE answer:

1. motor expenses of £225, correctly entered in the cash book, and posted to Motor Expenses as a credit
2. motor expenses of £225, entered in the cash book as a receipt and posted to Motor Expenses as a credit
3. motor expenses of £450, correctly entered in the cash book, and posted to Motor Vehicles as a debit
4. motor expenses of £675, entered in the cash book as a credit of £225 and posted to Motor Expenses as £225 debit

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
2. Not correct
3. Not correct
4. Not correct

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

The following information is extracted from the books of a company.

• Freehold premises at cost – £150,000
• Provision for depreciation of freehold premises – £100,000
• The premises are revalued at – £300,000.

Which entries are required in the company’s books to record the revaluation?

Select ONE answer:

1. Profit and Loss Account debit £0 / Freehold Premises at Cost account debit £150,000 / Provision for depreciation debit £100,000 / Revaluation Reserve credit £250,000
2. Profit and Loss Account debit £100,000 / Freehold Premises at Cost account debit £150,000 / Provision for depreciation debit £100,000 / Revaluation Reserve credit £250,000
3. Profit and Loss Account debit £100,000 / Freehold Premises at Cost account debit £150,000 / Provision for depreciation debit £100,000 / Revaluation Reserve credit £300,000
4. Profit and Loss Account debit £0 / Freehold Premises at Cost account debit £150,000 / Provision for depreciation debit £100,000 / Revaluation Reserve credit £300,000

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
2. Not correct
3. Not correct
4. Not correct

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