Gce Model Questions Vol1 2022 Financial Accounting Question 48

Practice objective / multiple choice question 48 from the 2022 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2022 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 48 GCE_MODEL_QUESTIONS_VOL1 • 2022 • FINANCIAL_ACCOUNTING • objective

The Debtors Control account opened with a debit balance of \(120,000\). During the month credit sales amounted to \(85,000\) and cash received from debtors was \(95,000\). At month‑end the total of the individual debtor balances in the subsidiary ledger is \(105,000\). What balance should be shown in the Debtors Control account and what is the amount of the discrepancy between the control account and the subsidiary ledger?

Answer Options

Correct Answer A. Debtors Control balance = 110,000 (Dr); Discrepancy = 5,000 (overstated)
B. Debtors Control balance = 105,000 (Dr); Discrepancy = 0 (balanced)
C. Debtors Control balance = 115,000 (Dr); Discrepancy = 10,000 (overstated)
D. Debtors Control balance = 110,000 (Dr); Discrepancy = 5,000 (understated)
Correct Answer
A
Correct Option:
Debtors Control balance = 110,000 (Dr); Discrepancy = 5,000 (overstated)

About This Question

This is Gce Model Questions Vol1 2022 Financial Accounting Question 48. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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