Interactive workbook: Multiple-choice-questions 5.7 - Introduction to Accounting 2e Student Resources

. Credit sales of £18,000 have been omitted from the books of account. The figure of £18,000 includes VAT at the rate of 20%. What is the required double entry to correct this error?

Debit Sales £15,000, Debit VAT £3,000, Credit Trade receivables control account £18,000.

Debit Trade receivables control account £18,000, Credit Sales £15,000, Credit VAT £3,000.

Debit Sales £18,000, Debit VAT £3,600, Credit Trade receivables control account £21,600.

Debit Trade receivables control account £21,600, Credit Sales £18,000, Credit VAT £3,600.

. £3,000 cash has been paid to a company's landlord as rent on office space. This expense has been recorded as a motor expense and a reduction in cash. What is the required double entry to correct this error?

Debit Rent £3,000, Credit Motor expenses £3,000.

Debit Rent £3,000, Credit Cash £3,000.

Debit Rent £6,000, Credit Motor expenses £6,000.

Debit Rent £6,000, Credit Cash £6,000.

. Cash sales of £5,000 have been credited to the trade payables control account and debited to cash. What is the required double entry to correct this error?

Debit Cash £5,000, Credit Trade payables control account £5,000.

Debit Cash £5,000, Credit Sales £5,000.

Debit Sales £5,000, Credit Trade payables control account £5,000.

Debit Trade payables control account £5,000, Credit Sales £5,000.

. A new vehicle costing £25,000 has been acquired for cash. The correct accounts have been debited and credited, but the cost of the acquisition has been recorded as £2,500 in the cash and motor vehicle accounts. What is the required double entry to correct this error?

Debit Cash £22,500, Credit Motor vehicles £22,500.

Debit Cash £25,000, Credit Motor vehicles £25,000.

Debit Motor vehicles £22,500, Credit Cash £22,500.

Debit Motor vehicles £25,000, Credit Cash £25,000.

. Goods purchased from suppliers for £7,500 (net of VAT at the rate of 20%) have been debited to the trade payables control account, credited to the VAT account and credited to the purchases account. What is the required double entry to correct this error?

Debit Purchases £6,250, Debit VAT £1,250, Credit Trade payables control account £7,500.

Debit Purchases £7,500, Debit VAT £1,500, Credit Trade payables control account £9,000.

Debit Purchases £12,500, Debit VAT £2,500, Credit Trade payables control account £15,000.

Debit Purchases £15,000, Debit VAT £3,000, Credit Trade payables control account £18,000.

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