Two errors have been found in Alex plc’s accounts:
1 The credit balance of £420 in Ahmed’s payables ledger account had been set off against his account in the receivables ledger. No entries had been made in the receivables and payables control accounts.
2 Thomas’s personal account balance of £240 had been removed from the receivables ledger as an irrecoverable debt. No entry had been made in the receivables control account
The journal that corrects both these errors is?
Select ONE answer:
- Debit Payables control £420, Debit Irrecoverable debts expense £240, Credit Receivables control £660
- Debit Receivables control £660, Credit Irrecoverable debts expense £240, Credit Payables control £420
- Debit Payables control £660, Credit Irrecoverable debts expense £240
- Debit Receivables control £420, Debit Irrecoverable debts expense £240, Credit Payables control £660
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
- Correct
- Not correct
- Not correct
- Not correct
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