At the start of a financial year, a firm’s gross debtors amounted to £5,000.
At the end of the year, this amount had increased by 20%. During the year £15,000 was received from debtors and discounts totalling £1,000 were allowed to debtors.
Bad debts written off amounted to £2,000 and £4,000 was received from a debtor previously written off as bad.
Credit sales for the year were?
Select ONE answer:
- £14,000
- £15,000
- £19,000
- £20,000
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 3
- Not correct
- Not correct
- Correct
- Not correct
Answer 3:
Debtors
Dr Balance b/d £5,000
Dr Bad Debt Recovered £4,000
Dr Sales (Credit) £19,000
Dr Totals £28,000
Cr Bank £15,000
Cr Bank (Bad Debt Recovered) £4,000
Cr Discount Allowed £1,000
Cr Bad Debts £2,000
Cr Balance c/d £6,000 (£5,000 + 20%)
Cr Totals £28,000
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