Accounting Multiple Choice Question – 18 March 2020

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

Which of the following errors, on its own, could account for the total of the balances in a firm’s debtors ledger being £800 more than the debit balance on its debtors control account?

Select ONE answer:

  1. Discounts allowed totalling £800 have been omitted from the nominal (general) ledger but correctly accounted for in the debtors’ ledger.
  2. One debtors’ ledger account with a credit balance of £800 has been treated as a debit balance when totalling the balances in the debtors’ ledger.
  3. The total amount received from debtors, as shown in the cash book (or cash receipts book) is overstated by £800.
  4. None of the above.

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

  1. Not correct – Discounts allowed being omitted from the nominal (general) ledger but correctly accounted for in the debtors ledger would result in the balance on the debtors control account being greater than the total of the list of debtors balances.
  2. Not correct – A credit balance on a debtors ledger account being treated as a debit balance would result in the balance on the debtors control account being greater than the total of the list of debtors balances.
  3. Correct
  4. Not correct

 

 

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