Tag: AQA

Ken and Harold had been in partnership sharing profits and losses equally.

On 1 July 2021, Edgar was admitted as partner and the three partners shared profits and losses equally.

On that date assets were revalued and there was a profit on revaluation, £36 000.

What were the accounting entries to record the profit on revaluation?

Select ONE answer:

1. credit Ken current account £18,000, credit Harold current account £18,000
2. credit Ken current account £12,000, credit Harold current account £12,000, credit Edgar current account £12,000
3. credit Ken capital account £18,000, credit Harold capital account £18,000
4. credit Ken capital account £12,000, credit Harold capital account £12,000, credit Edgar capital account £12,000

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
4. Not correct

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

Lucy and Michelle are in partnership.

Which item should appear in the partnership appropriation account?

Select ONE answer:

1. additional capital contributed by Michelle
2. cash drawings of Lucy and Michelle during the year
3. salary due to Lucy
4. salary paid to Michelle’s sister

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.

A business provided the following information about motor expenses for the year ended 31 December 2021.

• prepaid at 1 January 2018 – £975
• accrued at 1 January 2018 – £650
• bank payments during the year – £4,875
• prepaid at 31 December 2021 – £1,175
• accrued at 31 December 2021 – £545

What was the motor expense to be included in the income statement for the year ended 31 December 2021?

Select ONE answer:

1. £3,920
2. £4,570
3. £5,180
4. £5,830

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 2

1. Not correct
2. Correct ==> £975 + £4,875 + £545 – £650 – £1,175
3. Not correct
4. Not correct

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

A business has provided the following information about its inventory.

• cost price – £18,750
• cost of repairs required to bring the inventory to a saleable condition – £3,750
• selling price after the repairs – £21,000

Which valuation should be used for inventory in the financial statements?

Select ONE answer:

1. £15,000
2. £17,250
3. £22,500
4. £24,750

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 2

1. Not correct
2. Correct ==> £21,000 – £3,750
3. Not correct
4. Not correct

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

Alex sent goods to Lucy on a sale or return basis at a selling price of £5,000.

His selling price is based on a mark-up of 25%.

Lucy returned goods with a selling price of £1,000 and purchased the remainder.

What was the net effect on Alex’s inventory value?

Select ONE answer:

1. £800 increase
2. £1,000 increase
3. £3,200 decrease
4. £4,000 decrease

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 – (£5k – £1k) = £4k * 0.8 (25% MUP = 20% GM) ==> £3.2K
4. Not correct

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