Accounting Multiple Choice Question – 25 February 2020

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

The total amount of money received from debtors, in addition to being recorded in the bank account, should be . . .

Select ONE answer:

  1. credited to the sales account.
  2. credited to the debtors’ control account.
  3. debited to the debtors’ control account.
  4. debited to the sales 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 – The twin effects of receiving money from debtors are that the bank balance will be increased when the money is lodged and the debtors owe less than they previously did. To increase an asset account (bank), that account must be debited (therefore, debit the bank account) and to decrease an asset account (debtors), that account must be credited (therefore credit the debtors’ control account).
  3. Not correct
  4. Not correct

 

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