The following information relates to a firm’s most recent accounting period.
- Debtors at 1 January £8,000
- Transactions for the period. 1 January to 31 December
- Discount allowed £1,000
- Credit sales £89,000
- Receipts from debtors £80,000
- Cash sales £6,000
- Returns inwards £6,000
The balance on the firm’s debtors control account at 31 December was?
Select ONE answer:
- £3,000
- £10,000
- £11,000
- £17,000
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
- Not correct
- Correct
- Not correct
- Not correct
Answer 2:
Cash sales are not relevant to the debtors control account
Debtors
Dr Balance b/d £8,000
Dr Sales (Credit) £89,000
Dr Totals £97,000
Cr Bank £80,000
Cr Bad Debts £0
Cr Discount Allowed £1,000
Cr Returns Inwards £6,000
Cr Balance c/d £10,000
Cr Totals £97,000
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