Accounting Multiple Choice Question – 12 September 2018

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

Accounting

If there is a separate sub-ledger account for every debtor and creditor, which of the following double-entries is the correct way to record money received from Peter Smith, who is a debtor to the business?

Select ONE answer:

  1. Account to Debit Peter Smith / Account to Credit Bank
  2. Account to Debit Bank / Account to Credit Peter Smith
  3. Account to Debit Bank / Account to Credit Cash
  4. Account to Debit Cash / Account to Credit Peter Smith

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 2 – This is the correct double entry record when a firm receives money from one of its debtors for an unpaid invoice.

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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