Day: May 25, 2024

Identify whether the following occurrences might explain the existence of a credit balance on a customer’s receivables ledger account.

The bookkeeper posted a total from the sales day book to the receivables control account twice by mistake.

A  Would explain a credit balance

B  Would not explain a credit balance

The customer failed to take account of a credit note when payıng an invoice.

C  Would explain a credit balance

D  Would not explain a credit balance

Select ONE answer:

1. A & C
2. A & D
3. B & C
4. B & D

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
2. Not correct
3. Correct – False this is a control account posting therefore does not affect the individual balances in the ledger.  True – the customer would overpay if it ignored a credit note.
4. Not correct

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