Day: March 11, 2020

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

 

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