Accounting Multiple Choice Question – 11 March 2020

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

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:

  1. £3,000
  2. £10,000
  3. £11,000
  4. £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

  1. Not correct
  2. Correct
  3. Not correct
  4. 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

 

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