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MULTIPLE CHOICE QUESTIONS

1. You are given the following information:

 Receivables at 1 January 20X3 \$10,000 Receivables at 31 December 20X3 \$9,000 Total receipts during 20X3 (including cash sales of \$5,000) \$85,000

Sales on credit during 20X3 amount to

A. \$81,000

B. \$86,000

C. \$79,000

D. \$84,000

2. Your payables ledger control account has a balance at 1 October 20X8 of \$34,500 credit. During October, credit purchases were \$78,400, cash purchases were \$2,400 and payments made to suppliers, excluding cash purchases and after deducting cash discounts of \$1,200 were \$68,900. Purchases returns were \$4,700.

The closing balance was:

A. \$38,100

B. \$40,500

C. \$47,500

D. \$49,900

3. You are an employee of Excel Co and have been asked to help prepare the end of year

statements for the period ended 30 November 20X9 by agreeing the figure for the total

receivables.

The following figures, relating to the financial year, have been obtained form the books of original entry.

 \$ Purchases for the year 361,947 Sales 472,185 Returns inwards 41,226 Returns outwards 16,979 Bad debts written off 1,914 Discounts allowed 2,672 Discounts received 1,864 Cheques paid to payables 342,791 Cheques received form receivables 429,811 Customer cheques dishonored 626

You discover that at the close of business on 30 November 20X8 the total of the receivables amounted to \$50,241. What is the balance on the receivables ledger control account at 30 November 20X9?

\$

4. A debit balance of \$1,250 on X’s account in the books of Y means that:

A. X owes \$1,250 to Y

B. Y owes \$1,250 to X

C. X has returned goods worth \$1,250 to Y

D. X is owed \$1,250 by Y

5.

In the year to 31 December 20X0 this transaction occurred:

 Discounts allowed \$3,000 Discounts received \$1,500 Cash paid to suppliers \$30,000 Purchases from supplier \$40,000 Contras with receivables ledger \$1,000 Payables ledger control Account balance at 1 January 20 x 0 10,000

The balance on the payables ledger control account at 31 December is

A. \$16,000

B. \$17,500

C. \$18,500

D. \$20,500

6. A trainee accountant has prepared the following receivables ledger control account:

 20X3 \$ 20X3 \$ 1 Jan Balance Credit sales Discounts allowed Bad debts written off Sales returns 284,680 31 Dec Cash received from Credit customers Contras* 179,790 31 Dec 189,120 3,660 800 1,800 4,920 Balance 303,590 484,180 484,180

*= Contras against amounts owing by company in payables ledger

What should the closing balance on the account be when the errors in it are corrected?

A. \$290,150

B. \$286,430

C. \$282,830

D. \$284,430

7. You are provided with the following information relating to an enterprise:

 \$000 Trade payables opening balance 540 Cash paid to supplier 1,470 Cash purchases 57 Credit purchases 1,590 Credit notes received form suppliers 33 Discounts received from suppliers 24

The trade payables closing balance is:

8.

HB has receivables of \$37,500 at the start, and \$39,000 at the end, of its year ended 31 December 20X8.

During the period, cash sales of \$263,500 and credit sales of \$357,500 were made, discounts allowed amounted to \$15,750 and discounts received were \$21,400. Bad debts of \$10,500 were written off and HB wishes to retain its allowance for bad debts at 5% of total receivables.

The cash received in the year totaled:

A. \$329,750

B. \$593,175

C. \$593,250

D. \$614,650

9. You are given the following figures relating to purchases by an enterprise and its trade payables:

 \$ Payables at 1 November 20X6 76,104 Payables at 31 October 20X7 80,643 Purchases 286,932 Cash paid to suppliers 271,845 Discounts received 5,698 Debit balances transferred to trade receivables ledger 107 Credit balance offset against trade receivables ledger Debit balance 866 Sundry minor credit balance written off 82

The amount of purchases returned to suppliers (i.e. purchases returns) during the year ending 31 October 20X7 was:

\$

10. Which of the following items could appear on the credit side of a receivables ledger control account?

 (1) Cash received from customers (2) Bad debs written off (3) Increase in allowance for doubtful debts (4) Discounts allowed (5) Sales (6) Credits for goods returned by customers (7) Cash refunds to customers A. 1, 2, 4 and 6 B. 1, 2, 4 and 7 C. 3, 4, 5, and 6 D. 5 and 7

11. The following accounts receivable ledger control account contains some inaccurate entries.

Accounts Receivable Ledger Control Account

 \$ \$ Opening receivables Discounts allowed Receipts from customers 14,500 Credit sales Sales returns Contra to accounts payable ledger 53,500 350 1,400 51,200 50

The correct closing balance for receivables should be:

\$

12.

The entries in an accounts receivable ledger control account are:

 Sales \$250,000 Bank \$225,000 Sales returns \$2,500 Bad debts \$3,000 Returned unpaid cheque \$3,500 Contra accounts payable ledger account \$4,000

What is the balance on the accounts receivable ledger control account?

A. \$12,000

B. \$19,000

C. \$25,000

D. \$27,000

13. An inexperienced bookkeeper has drawn up the following receivables ledger control account:

Receivable Ledger Control Account

 \$ \$ Opening balances Cash from credit customer Sales returns Cash refunds to credit customers Discounts allowed 180,000 Credit sales Bad debts written off Contras against payable ledger Closing balance (balancing figure) 190,000 228,000 1,500 8,000 2,400 3,300 229,600 4,200 423,500 423,500

What should the closing balance be after correcting the errors made in preparing the account?

A. \$130,600

B. \$129,200

C. \$142,400

D. \$214,600

14. The following information is taken from the book of a business:

 \$ Debtors at 1 January 19X8 22,500 Debtors at 31 December 19X8 27,300 Credit sales in 19X8 107,800

The cash received from debtors during 19X8 amounted to:

A. \$80,500

B. \$85,300

C. \$103,000

D. \$112,600

15. A debtor’s control account contains the following entries:

\$

 Balance brought forward at 1 January 21,400 Bank 102,000 Discounts allowed 8,125 Credit sales 120,100

There are no other entries in the account.

What is the closing balance carried forward at 31 December?

A. \$4,825

B. \$11,525

C. \$31,375

D. \$47,625

16. A creditor’s control account contains the following entries:

\$

 Bank 79,500 Credit purchases 83,200 Discounts received 3,750 Contra with debtors control account 4,000 Balance c/f at 31 December 19X8 12,920

There are no other entries in the account.

What was the opening balance brought forward at 1 January 19X8?

A. \$8,870

B. \$8,970

C. \$16,970

D. \$24,370

17. The following information is available about a company’s debtors:

 \$ Balance b/f at 1 January 19X8 13,850 Provision for doubtful debts at 1 January 19X8 1,110 Increase in provision during 19X8 120 Discount allowed in year 3,940 Sales in year 121,730 Purchase ledger contras in year 8,900 Receipts from customers in year 114,200

What is the balance carried forward at 31 December 19X8 on the debtors control account?

A. \$7,310

B. \$8,420

C. \$8,540

D. \$26,340

18. A purchase Ledger Control Account is prepared from relevant figures in the following list.

 Total creditors at start of month 900 Credit purchases 12,000 Customers’ debts set off 200 Cash paid to creditors 11,800 Returns inwards 300

What is the closing balance?

A. \$600

B. \$900

C. \$1,100

D. \$1,400

19. The balance purchase ledger control account should be equal to.

A. The total amount, which the firm paid to its creditors.

B. The firm’s total purchases.

C. The total of list of creditors outstanding.

D. The cost of sales.

20. The opening balance of the purchase ledger control account is \$15,000. Credit purchase amounted to \$87,000, while cash purchases were \$12,000 and payment to creditors were

\$94,000.

What would be the closing balance of the purchase ledger control account?

A. \$7,000

B. \$8,000

C. \$14,000

D. \$22,000

21. The opening balance of the purchase ledger control account is \$165,000 as credit balance while \$13,000 in debit balances. Credit purchases amounted to \$187,000 and cash purchases were \$121,000 and payment to creditors was \$196,000.

What would be the net closing balance of the purchase ledger control account?

A. \$107,000

B. \$161,000

C. \$143,000

D. \$156,000

22. Creditors at beginning of the period totaled \$12,500 and at the end totaled \$14,200. During the period the firm paid \$32,000 to its creditors, its credit purchases for the period totaled.

A. \$30,300

B. \$31,600

C. \$33,700

D. None of the above

23. From the following information, what balance amount is receivable at the end of the year from its debtors?

\$

 Debtors at start 11,500 Credit sales for during the period 198,000 Money received from debtors during the period 185,000 Discount allowed 1,200 Discount received 2,100 Return inwards 13,000

A. \$8,200

B. \$10,300

C. \$18,500

D. \$83,500

24. What is the balance on the creditors control account at 30 June?

 Credit balance on the creditors Control account at 1 July \$14,600 Credit purchases \$154,000 Payment to suppliers \$149,000 Credit purchases returns \$6,000 Refunds received from suppliers \$2,000 Discount received \$1,000 Balance in creditors ledger set off against debtors ledger \$1,000

A. \$8,600

B. \$9,600

C. \$12,600

D. \$13,600

25. The balance on a firm’s debtors control account is \$6,000. The balance on its bad debts account is \$300 and the balance on its provision for bad debts account is \$285. If a bad debt of \$300 previously written off, is subsequently recovered. The correct balance on the debtors control account in the nominal (general) ledger after recording the recovery, is

A. \$5,415

B. \$5,700

C. \$6,000

D. None of the above

26. From the following information, calculate the value of purchases.

\$

 Opening payables 142,600 Cash paid 42,300 Discounts received 13,200 Goods returned 27,500 Closing payables 137,800

A. \$78,200

B. \$35,900

C. \$65,000

D. \$50,700

27. A supplier sends you a statement showing a balance outstanding of \$15,350. Your own records show a balance outstanding of \$15,500.

The reason for this difference could be that

A. The supplier sent an invoice for \$150 which you have not yet received

B. The supplier has allowed you \$150 cash discount which you had omitted to enter in your ledgers

C. You have paid the supplier \$150 which he has not yet accounted for

D. You have returned goods worth \$150 which the supplier has not yet accounted for

28. The receivables ledger control account at 1 May in Mary’s books had balances of \$32,750 debit and \$1,275 credit. During May, sales of \$125,000 were made on credit. Receipts from receivable amounted to @122,500 and cash discounts of \$550 were allowed. Refunds of \$1,300 were made to customers. The closing balances at 31 May could be

A. \$35,175 debit and \$3,000 credit

B. \$35,675 debit and \$2,500 credit

C. \$36,725 debit and \$2,000 credit

D. \$36,725 debit and \$1,000 credit

29. The debit side of a trial balance totals \$50 more than the credit side. This could be due to

A. A purchase of goods for \$50 being omitted form the supplier’s account

B. A sale of goods for \$50 being omitted form the customer’s account

C. An invoice of \$25 for electricity being credited to the electricity account

D. A receipt for \$50 from a customer being omitted from the cash book

30. A receivables ledger control account had a closing balance of \$8,500. It contained a contra to the payable ledger of \$400, but this had been entered on the wrong side of the control account. What is the correct balance?

A. \$7,700 debit

B. \$8,100 debit

C. \$8,400 debit

D. \$8,900 debit

31. A receivables ledger control account showed a debit balance of \$37,642. The individual receivables’ accounts in the receivables ledger showed a total of \$35,840. The difference could be due to

A. Undercasting the sales day book by \$1,802

B. Overcastting the sales returns day book by \$1,802

C. Entering a cash receipt of \$1,802 on the debit side of a customer’s account

D. Entering cash discount allowed of \$901 on the debit side of the control account

32. At 1 April 20X9, the payables ledger control account showed a balance of \$142,320. At the end of April the following totals are extracted from the subsidiary books for April:

 Purchases day book \$183,800 Returns outwards day book \$27,490 Returns inwards day book \$13,240 Payments to payables, after deducting \$1,430 cash discount It is also discovered that: \$196,360
 (a) The purchase daybook figure is net of sales tax at 17.5%; the other figures all include sales tax. (b) A customer’s balance of \$2,420 has been offset against his balance of \$3,650 in the payables ledger. (c) A supplier’s account in the payables ledger, with a debit balance of \$800, has been included on the list of payables as a credit balance.

Calculate the corrected balance on the payables ledger control account

33. Which of the following would require an adjustment to be made to both the receivables ledger control account and the list of balances?

A. The sales day book being undercast by \$900

B. The failure to record anywhere in the books a contra entry between Mr. Gibson’s receivables ledger account and his payables ledger account

C. The posting of an invoice for \$150 to the account of Mr. Jones rather than Mr. Johns.

D. The figure for the sums received from customers of \$3,214 in the cash book being posted to the receivables ledger control account as \$2,314

Question 34 and 35 relate to Franklin, who is reconciling the balance on his payables ledger control account with the total of the list of balance on his payables ledger control account with the total of the list of balances from his payables ledger.

34. A debit balance of \$200 on a supplier’s account has been included in the list of balances as a credit balance.

Control account

A. Credit \$400

B. Credit \$200

List of balances

increase total by \$200

reduce total by \$400

reduce total by \$400

35. The purchases daybook has been overcast by \$1,000.

D.

Debit \$400

 Control account List of balances A. Debit \$1,000 no adjustment

B. Debit \$2,000

C. Credit \$1,000

reduce total by \$2,000

increase total by \$1,000

36. An invoice for \$69 has been recorded in the sales daybook as \$96. When the receivable ledger reconciliation is prepared, adjustments will be required to:

A. The control account and the list of balances

B. Neither the control account nor the list of balances

C. The control account but not the list of balances

D. The list of balances but not the control account

37. The amount owed to Janet by her customers at 31 March 20X1 was \$34,500. A year earlier she was owed \$39,500.

During the year, Janet lodged \$327,500 to her bank account. As well as payments received from her customers, this amount included \$45,000, which Janet had received from the sale of her holiday home.

\$

The value of Janet’s sales for the year to 31 March 20X1 is

38. Alpha received a statement of account from a supplier Beta, showing a balance to be paid of \$8,950. Alpha’s payables ledger account for Beta shows a balance due to Beta of \$4,140.

Investigation reveals the followings:

 (1) Cash paid to Beta \$4,080 has not been allowed for by Beta. (2) Alpha’s ledger account has not been adjusted for \$40 of cash discount disallowed by Beta. (3) Goods returned by Alpha \$380 have not been recorded by Beta

What discrepancy remains between alpha and Beta’s record after allowing for these items?

A. \$9,310

B. \$390

C. \$310

D. \$1,070

39. The bookkeeper of HH was instructed to make a contra entry for \$270 between the supplier account and the customer for GG.

He recorded the transaction by debiting the customer account and crediting the supplier account with \$270. The accounting records of HH do not include control accounts.

Which of the following statements is correct?

A. Unless the error is corrected, profit will be over-stated by \$540.

B. Unless the error is corrected, net assets will be over-stated by \$270.

C. Unless the error is corrected, net assets will be over-sated by \$540.

D. The errors should be corrected, but neither the profit nor the net assets are over-stated.

40. Which of the following would NOT lead to a difference between the total of the accounts balances in the accounts receivable ledger and the balance on the accounts receivable ledger control account?

A. An error in totaling the sales journal

B. An error in totaling the receipts column of the cash book

C. An overstatement of an entry in a customer’s account in the accounts receivable ledger

D. An entry posted to the wrong customer account in the accounts receivable ledger

41. AT receives goods form BR on credit terms and AT subsequently pays by cheque. At then discover that the goods are faulty and cancels the cheque before BR cashes it.

How should AT record the cancellation of the cheque in his books?

A. Debit payables Credit purchase returns

B. Credit Bank Debit payables

C. Debit Bank Credit payables

D. Credit payables Debit purchase returns

42. Which ONE of the following might explain a debit balance on a supplier’s account in the accounts payable ledger of an enterprise?

A. The enterprise took a cash discount to which it was not entitled and paid less than the amount due.

B. The enterprise mistakenly paid too much.

C. The bookkeeper failed to enter a contra with the accounts receivable ledger.

D. The bookkeeper failed to post a cheque paid to the supplier’s account

The following information relates to questions 43 to 47

The accounts payable clerk of R plc extracted a listing of balances due on 31 July 20X0. These were totaled and found to equal \$174,000. The balance on the accounts payable control account as at the same date was \$179,000. R plc’s chief accountant called for an investigation and uncovered several error.

43. R plc purchase daybook was overcast by \$4,000 during July 20X0.

Which of the following adjustments would correct this error?

A. Debit the accounts payable control account and credit purchases and sales tax.

B. Credit the accounts payables control account and debit purchases and sales tax.

C. Reduce the balance on an individual payable account and reduce the total for all balances.

D. Increase the balance on an individual payable account and increase the total for all balances.

44. H Ltd’s account in R plc’s purchase ledger had been miscast and the total due overstated by \$1,000. Which of the following adjustment would correct this error?

A. Debit the accounts payable control account and credit purchase and sales tax

B. Credit the accounts payable control account and debit purchases and sales tax.

C. Reduce the balance on an individual supplier’s account and reduce the total for all balances.

D. Increase the balance on an individual supplier’s account and increase the total for all balances.

45. The accounts payable ledger listing omitted three balances worth a total of \$2,500. Which of the following adjustments would correct this error?

A. Debit the accounts payable control account and credit purchases and sales tax.

B. Credit the payables ledger control account and debit purchases and sales tax.

C. Reduce the total for all balances.

D. Increase the total for all balances.

46. A debit balance of \$250 due from P Ltd had been treated as a credit balance in the accounts payable ledger clerk’s listing.

Which of the following adjustments would correct this error?

A. Reduce the total for all balances by\$250

B. Increase the total for all balances by \$250.

C. Reduce the total for all balances by \$500

D. Increase the total for all balances by \$500.

47. M plc received \$2,700 of cash discounts for prompt payment during July. An oversight meant that this information was not passed on to either the nominal ledger or the nominal ledger

clerks.

Which of the following adjustments would correct this error?

A. Debit the accounts payable control account and credit discounts received. Leave the purchase ledger total unadjusted.

B. Credit the accounts payable control account and debit discounts received. Leave the purchase ledger total unadjusted.

C. Reduce the balance on the individual supplier accounts and reduce the total for all balances. Leave the accounts payable control unadjusted.

D. Reduce the balance on the individual supplier accounts and reduce the total for all balances. Debit the accounts payable control account and credit discounts received.

48. The purchases daybook of Harry has been undercast by \$500, and the sales daybook has been overcast by \$700. Harry maintains payables ledger control accounts as part of the double entry bookkeeping system. The effect of correcting these errors will be to:

A. Make adjustments to the ledger balances of the individual receivables and payables, with no effect on profit

B. Make adjustments to the ledger balances of the individual receivables any payables, with a decrease in profit of \$1,200.

C. Make adjustments to the control accounts, with no effect on profit

D. Make adjustments to the control accounts, with a decrease in profit of \$1,200.

49. In reconciling the accounts receivable ledger control account with the list of receivable ledger balances of Snooks Ltd, the following errors were found:

1. The sales daybook had been overcast by \$370.

2. A total of \$940 from the cash receipts book had been recorded in the accounts receivables ledger control account as \$490.

A. Credit accounts receivable control account \$820. Decrease total of sales ledger balances by \$820.

B. Credit accounts receivable control account \$820. No change in total of sales ledger balances.

C. Debit accounts receivable control account \$80. No change in total of sales ledger balances.

D. Debit accounts receivable control account \$80. Increase total of sales ledger balances by \$80.

50. For the month of November 20X0 Hershel Ltd’s purchases totaled \$225,600 with sales tax of \$39,480. The total of \$265,080 has been credited to the accounts payable ledger control account as \$260,580.

Which of the following adjustments is correct?

Control Account List of payables balances

A.

B. \$4,500 Cr

\$4,500 Cr

C.

D. \$33,840 Dr

\$29,340 Dr

Increase by \$4,500

No effect

Increase by \$4,500

51. Which one of the following occurrences might explain the existence of a credit balance on an individual debtor’s account?

A. The bookkeeper failed to make a posting from the returns inwards book to the debtors ledger

B. The debtor took advantage of a settlement discount and paid less than the full amount invoiced

C. The bookkeeper failed to post an invoice from the sales day book to the debtors ledger

D. The bookkeeper posted a total from the returns inwards book to the debtors control account twice by mistake.

52. The total of the purchase daybook is posted:

A. To the debit of the supplier’s account

B. To the debit of the purchases account

C. To the credit of the customer’s account

D. To the credit of the purchases account

53. Which one of the following items would not appear in a debtors control account?

A. Provision for doubtful debts

B. Returns inwards

C. Discounts allowed

D. Interest charged on overdue accounts

54. After you have paid a creditor \$1,000 he informs you that you were entitled to a settlement discount of 5% which you forgot to deduct.

What is the correct double entry to rectify this error in your books?

 A. Discount allowed Debit Credit Creditors account B. Creditors account Debit Credit Discount received C. Bank account Debit Credit Discount received D. Discount received Debit Credit Creditors account

55. The balance on a company’s creditors control account differs from the total of creditors’ balances in the purchase ledger.

Which one of the following occurrences might account for the discrepancy?

A. A trade discount was calculated incorrectly

B. A cheque payment to a supplier was omitted from the books

C. The total of cash receipts in the cash book was miscast

D. Returns outwards were not entered in the personal account of a supplier

Data for question 56 57

Womble & Sons have an accounting year ended 31 December 19X8. At that date the balance on the sales ledger control account was \$65,000, but the total of the individual accounts in the sales ledger came to \$63,620. Upon investigation the following facts were discovered.

1. The Sales daybook total for week 49 had been overcast by \$300.

2. A credit balance of \$210 on Orinocco’s account in the sales ledger had been incorrectly treated as a debit entry, when balancing off his account.

3. A purchase ledger contra of \$1,500 had been entered in Bungo’s account in the sales ledger but no other entry had been made.

56. The adjusted balance on the sales ledger control account is:

A. \$62,780

B. \$63,200

C. \$63,620

D. \$64,700

57. The adjusted total of sales ledger balances is:

A. \$62,780

B. \$63,200

C. \$63,620

D. \$64,700

58. The total of the balances in a company’s sales ledger is \$800 more than the debit balance on its debtors control account. Which one of the following errors could by itself account for the discrepancy?

A. The sales day book has been undercast by \$800

B. Settlement discounts totaling \$800 have been omitted from the nominal ledger

C. One sales ledger account with a credit balance of \$800has been treated as a debit balance

D. The cash receipts book has been undercast by \$800

Data for question 59 60

The balances in a company’s sales ledger at 31 December were totaled and their sum was found to be \$83,795. At the same date, the debit balance on the company’s debtors control account was \$82,511. Upon investigation the following facts were discovered:

1. One customer, whose balance was \$420 credit, had been omitted from the list of sales ledger balances

2. A bad debt of \$500 had not been entered in the nominal ledger

3. Cash received of \$280 had been debited to the customer’s personal account.

59. The adjusted total of sales ledger balances is:

A. \$81,207

B. \$82,815

C. \$83,655

D. \$83,935

60. The adjusted balance on the sales ledger control account is:

A. \$81,207

B. \$82,815

C. \$83,655

D. \$83,935

61. Which of the following is not a valid reason for keeping a control account for sales?

A. To enable greater control over receivable balances to be exercised

B. To authorize the setting of credit limits for customers

C. To help prevent or detect fraud

D. To enable the preparation of monthly accounts more easily

62. Which of the following will appear on the debit side of a purchase ledger control account?

A. Discounts allowed

B. Repayments by suppliers

63. Which of the following is a valid reason for a credit balance on a trade receivables account?

A. Allowances given and posted to an incorrect account

B. Deposits paid in advance by a customer

C. Cash incorrectly posted to the trade receivables account

64. The total of the balance in the purchase ledger control account is \$1,500 more than the total of the trade payable balances extracted from the purchase ledger. Which of the following would explain this difference?

A. The purchase daybook is over added by \$1,500.

B. Discounts received have not been posted in the purchase ledger account

C. Cash paid to trade payables has not been posted in some account in the purchase ledger

D. A contra entry between the purchase and sales ledgers has been omitted from the

purchase ledger but was posted in the control account.

65. X buys from and sells goods to y. At the end of the month, X owes Y \$3,200 and Y owes X \$1,914. An agreement is in force for the Sales Ledger account and Purchases Ledger account balances to be offset, so that only one payment is made. Which double entry records the offset in X’s books?

 Dr Cr \$ \$ A. Purchases Ledger Control account Sales Ledger Control Account Sales Ledger Control Account 3,200 3,200 B. Y’s (purchases Ledger) account Sales Ledger Control Account Sales Ledger Control Account 1,941 1,941 C. Purchases Ledger Control account Sales Ledger Control account 1,259 1,259 D. Purchases Ledger Control account Sales Ledger Control account 1,941 1,941

66. Besides debiting bank & crediting debtor’s personal account with the money received from a debtor, the same amount must also be.

A. Credited to the sales account.

B. Credited to the debtors control account.

C. Debited to the debtors control account.

D. Debited to the sales account.

67. Bad debts written-off during a period must be shown in the sales ledger control account on.

A. Debit side.

B. As balance carried down.

C. Credit side.

D. Both debit and credit sides.

68. The balance of sale ledger control account should agree with.

A. The total of the firm’s sales for that year.

B. The amount of money received form debtors during the year.

C. The total of debtors, which are outstanding for more than one year.

D. The total of its list of debtors outstanding.

69. A credit balance brought down in a debtors control account could be due to.

A. A credit note issued to a debtor at the end of year

B. A debtor paying les than the amount owed by him.

C. Unrecorded returns outwards.

D. Discount allowed recorded once in the debtors control account.

70. What would be the balance in the debtors control account if it has a debit balance of \$2,000 while the provision for bad debts account has a credit balance of \$300? Immediately a debtor of \$200 was written off.

A. \$1,800

B. \$1,500

C. \$2,000

D. \$1,700