Tag: AQA

In the case of a garage which deals with the public, which of the following double-entries is the correct way to record the payment, by cheque, of an electricity bill for the current accounting period ………..?

Select ONE answer:

1. Account to Debit Bank / Account to Credit Electricity
2. Account to Debit Electricity / Account to Credit Cash
3. Account to Debit Electricity / Account to Credit Bank
4. None of the above

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 – All expenses are recorded as debit entries in the relevant expense account and the bank balance is thus reduced as a result through a credit.

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

In the case of a DIY store, which of the following double-entries is the correct way to record the payment of council business rates for the for the current accounting period by cheque ………..?

Select ONE answer:

1. Account to Debit Bank / Account to Credit Rates
2. Account to Debit Rates / Account to Credit Bank
3. Account to Debit Expenses / Account to Credit Bank
4. None of the above

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 – All expenses are recorded as debit entries in the relevant expense account and the bank balance is thus reduced as a result through a credit.

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

In the case of a garage which deals with the public, which of the following double-entries is the correct way to record the lodgement of hire purchase commission received as a result of selling cars to customers ………..?

Select ONE answer:

1. Account to Debit Bank / Account to Credit Sales
2. Account to Debit Sales / Account to Credit Bank
3. Account to Debit Bank / Account to Credit Commission
4. None of the above

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 – Only the sale of “goods” should be recorded in the sales account as a credit. There should be a separate account for hire purchase commission.

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

In the case of a sole trader ………..?

Select ONE answer:

1. Earning profit does not affect capital.
2. Earning profit reduces capital.
3. Capital can arise only by earning profits.
4. Earning profit increases capital.

Explain how losses affect capital for a sole trader?:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 4 – Earning profit increases capital.

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

Which of the following double-entries is the correct way to record that goods returned to XYZ Ltd, who is one of your suppliers?

Select ONE answer:

1. Account to Debit Sales / Account to Credit XYZ Ltd
2. Account to Debit Returns Inwards / Account to Credit XYZ Ltd
3. Account to Debit Cash / Account to Credit Purchases
4. Account to Debit XYZ Ltd / Account to Credit Returns Outwards

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 – As XYZ Ltd is a creditor, then their account is a liability to the business. As a result of returning goods to XYZ Ltd, they are now owed less money. This reduction in a liability has to be recorded by a debit entry. Entries in the returns outwards account are always on the credit side.

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