Accounting Multiple Choice Question – 29 February 2020

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

Accounting

A credit balance brought down on a debtors control account cannot be explained by . . .

Select ONE answer:

  1. a credit note issued to a debtor immediately after he had paid his account in full.
  2. a debtor paying more than the amount owed by him.
  3. unrecorded returns outwards.
  4. discount allowed recorded twice in the debtors’ control 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 3

  1. Not correct – A credit note being issued to a debtor immediately after he had paid his account in full would result in a credit balance on that debtor’s account and therefore, possibly, a credit balance on the debtors’ control account.
  2. Not correct – A debtor paying more than the amount owed by him on his account would result in a credit balance on that debtor’s account and therefore, possibly, a credit balance on the debtors’ control account.
  3. Correct – Returns outwards (purchases returns) should be recorded in the creditor control account.
  4. Not correct – Discount allowed being recorded twice in the debtor control account could, if the amount was large enough relative to the amount owed by debtors, result in a credit balance on the debtor control account.

 

 

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

Author: stuart001uk2014

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

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s