Tag: Discount Allowed

Accounting Multiple Choice Question – 21 February 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Alex Trading is registered for VAT and received the following invoice from one of its VAT registered suppliers:

20 December 2023

Goods: 100 @£10 = £1,000
Less: Trade discount (£50)
Total: £950

A further discount of £50 will be allowed if payment is received within 14 days.

What amount of VAT should have been charged on the invoice?

Select ONE answer:

  1. £157.50
  2. £166.25
  3. £175.00
  4. £183.75

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 – (950 – 50) x 17.5% = £157.50. Remember that for VAT discount will be claimed back.
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 20 February 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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What is the correct double entry for discounts allowed?

Select ONE answer:

  1. Debit Discounts allowed & Bank, Credit Receivables
  2. Debit Discounts allowed & Bank, Credit Payables
  3. Debit Receivables, Credit Discounts allowed & Bank
  4. Debit Payables, Credit Discounts allowed & Bank

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

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Accounting Multiple Choice Question – 14 February 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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The double entry to record a settlement or cash discount granted by a supplier is?

Select ONE answer:

  1. Debit Payables, Credit Discounts allowed
  2. Debit Payables, Credit Discounts received
  3. Debit Discounts received, Credit Payables
  4. Debit Discounts allowed, Credit Payables

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

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

Accounting Multiple Choice Question – 2 February 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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In which book of prime or original entry would discounts allowed be recorded?

Select ONE answer:

  1. Sales day book or Sales Journal
  2. Purchases day book or Purchase Journal
  3. Cash book
  4. Journal

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

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

Accounting Multiple Choice Question – 27 January 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Two statements are made below:

Statement 1 – Books of prime or original entry in a standard double entry bookkeeping system are used to list similar transactions with the totals being posted to the nominal ledger.

A True
B False

Statement 2 – The sales journal or sales daybook is the book of prime or original entry for discount allowed to customers.

C True
D False

Which combination of the two statements is correct?

Select ONE answer:

  1. A & C
  2. B & C
  3. B & D
  4. A & D

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

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – (the cash book is the book of original entry for discounts)

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