Tag: Expenses

The following information is taken from the stationery account of Alex Trading Ltd.

• value of stationery inventory at the beginning of the year – £600
• cash paid for stationery during the year – £7,000
• amount owing for stationery at the end of year – £480
• value of stationery inventory at the end of the year – £800

How much should be debited to the income statement for stationery?

Select ONE answer:

1. £6,680
2. £6,800
3. £7,280
4. £8,080

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 — > £600 + £7,000 + £480 – £800
4. Not correct

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