Tag: AQA

A manufacturing company transfers its products from factory to warehouse at cost of production plus 20%.

The following information is available.

Provision for unrealised profit brought forward at 1 October 2019   £18,000

Closing stock of finished goods at 30 September 2020                   £96,000

What is shown in the Profit and Loss Account for the year ended 30 September 2020 for the provision for unrealised profit?

Select ONE answer:

1. £1,200 credit
2. £1,200 debit
3. £2,000 credit
4. £2,000 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 3

1. Not correct
2. Not correct
3. Correct = £96k/ 1.2 = £80k * 20% = £16k provision required only so £2k credit to P&L account
4. Not correct

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

A partnership does not maintain a Goodwill account. It recently admitted a new partner.

No adjustments were made for Goodwill in the partners’ Capital accounts.

What is the effect of this omission? 

Select ONE answer:

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
3. Not correct
4. Not correct

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

A partnership maintains both capital and current accounts for its partners.

Which is the correct accounting entry for recording interest on capital for partner X?

Select ONE answer:

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
3. Not correct
4. Not correct

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

The balance at bank in Lucy’s cash book at 30 June is £24,920 debit.

However, a cheque for £28,940 received from Alex and a cheque for £3,480 paid to Michelle appear in the cash book but not on the bank statement.

Bank charges of £9,000 have not been entered in the cash book.

What is the balance shown on the bank statement at 30 June?

Select ONE answer:

1. £1,620 credit
2. £4,340 debit
3. £5,580 credit
4. £5,580 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 2

1. Not correct
2. Correct = £24,920 – £9,000 – £28,940 + £3,480 
3. Not correct
4. Not correct

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

A trial balance does not balance and a Suspense account is opened.

Subsequently the following errors are found and the Suspense account is cleared.

1  A sales invoice for £1,240 had been omitted from the books.
2  Rent paid of £2,600 was entered correctly in the cash book but incorrectly as £6,200 in the Rent account.
3  The purchases journal was undercast by £1,980.

What was the original balance on the Suspense account?

Select ONE answer:

1. £1,620 credit
2. £4,340 debit
3. £5,580 credit
4. £5,580 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) £6,200 – £2,600 – (3) £1,980
2. Not correct
3. Not correct
4. Not correct

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