Before considering bad debts. the balance on a firm‘s debtors control account is £1,000 (debit) and the balance on its provision for bad debts account is £25 (credit).
Subsequently, a bad debt of £50 is written off.
The balance on the debtors control account in the nominal (general) ledger after writing off the above bad debt is?
Select ONE answer:
- £8,600
- £9,600
- £12,000
- £13,600
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
- Not correct
- Not correct
- Not correct
- Correct
Answer 4:
Creditors
Dr Discount Received £1,000
Dr Returns Outwards £6,000
Dr Bank £39,000
Dr Debtors £1,000
Dr Balance c/d £13,600
Dr Total £60,600
Cr Balance b/d £4,600
Cr Purchases £54,000
Cr Bank £2,000
Cr Total £60,600
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