Accounting Multiple Choice Question – 30 December 2022

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

Accounting
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At the beginning of the year a business has a provision for doubtful debts of £2,600.

At the year end the provision is to be 5% of trade receivables.

The balance on the sales ledger control account at the year end is £69,200, before writing off a bad debt of £480.

The business operates a separate bad debts account.

What is the entry in the Profit and Loss Account for the “provision for doubtful debts” T-account?

Select ONE answer:

  1. £836 debit
  2. £860 debit
  3. £836 credit
  4. £860 credit

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 1

  1. Correct = (£69,200 – £480) * 0.05 – £2,600 ==> £836 debit to the P&L
  2. Not correct
  3. Not correct
  4. Not correct

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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