Tag: VAT

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.

Photo by Pixabay on Pexels.com

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

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

Accounting Multiple Choice Question – 16 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

In relation to books of original or prime entry and double entry bookkeeping for an entity which is registered for VAT, which one of the following statements is correct?

Select ONE answer:

  1. The payables ledger column in the cash payments book is debited to the purchases account in the nominal ledger
  2. Purchases and VAT in the purchases daybook are recorded in the nominal ledger as debit entries to the purchases and VAT accounts respectively and as a credit entry in the payables control account
  3. The cash receipt recorded in the petty cash book when the petty cash is topped up is recorded as a debit entry in the main cash book
  4. VAT recorded in the cash book in respect of purchases is credited to the VAT account

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.

Accounting Multiple Choice Question – 13 February 2024

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

Photo by Nataliya Vaitkevich on Pexels.com

The VAT account in Alex Trading Ltd’s nominal ledger currently shows output tax and input tax for the quarter at £228,816 and £176,949, respectively.

A detailed review of the account highlights the following matters:

£8,301 of VAT on invoices received has been posted to output tax
VAT of £3,606 on sales has been posted to the debit of the VAT account

The correct amount payable to HM Revenue and Customs is?

Select ONE answer:

  1. £47,172
  2. £35,265
  3. £59,079
  4. £42,477

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 – VAT Balance is as follows: Dr Input tax £176,949 + Dr Purchases (£8,301 * 2) £16,602 = £193,551 == > Cr Output Tax £228,816 + Cr Sales (£3,606 * 2) £7,212 = £236,028 == > The difference is £42,477

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

Accounting Multiple Choice Question – 10 February 2024

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

Alex is a VAT registered trader whose sales and purchases carry VAT at the standard rate of 20%.

Alex sells a customer goods on credit for £5,000 exclusive of VAT.

The double entry to record this transaction in Alex’s book is?

Select ONE answer:

  1. Debit Sales £5,000, Debit VAT £1,000 and Credit Receivables £6,000
  2. Debit Sales £4,000, Debit VAT £1,000 and Credit Receivables £5,000
  3. Debit Receivables £6,000 and Credit Sales £5,000, Credit VAT £1,000
  4. Debit Receivables £5,000 and Credit Sales £4,000, Credit VAT £1,000

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

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

Accounting Multiple Choice Question – 4 February 2024

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

In which book of original entry is VAT on purchases from non-credit suppliers 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

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