Tag: The Double Entry Model

Accounting Multiple Choice Question – 26 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 the sole trader had receivables of £2,700 as at 1 December and during December made cash sales of £7,200, credit sales of £16,500 and received £15,300 from his credit customers.

The balance on Alex’s receivables account at the end of December was?

Select ONE answer:

  1. £1,500
  2. £3,900
  3. £8,700
  4. £11,100

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 – Bal b/d £2,700 + £16,500 credit sales – £15,300 payments = £3,900
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 24 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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When preparing an extended trial balance what are the entries for the business’s profit?

Select ONE answer:

  1. Debit the statement of financial position column and the income statement column
  2. Credit the statement of financial position column and the income statement column
  3. Debit the statement of financial position column and credit the income statement column
  4. Debit the income statement column and credit the statement of financial position column

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

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

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

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

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

Accounting Multiple Choice Question – 19 February 2024

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

Photo by Olya Kobruseva on Pexels.com

What is the correct treatment of a trade discount received from a credit supplier?

Select ONE answer:

  1. Recorded in the purchases daybook
  2. Deducted from the list price with the net amount recorded in the purchases daybook
  3. Recorded in the journal
  4. Deducted from the invoice total with the net amount recorded in the cash book

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

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