mMCQ.

Navigation Menu

Step into mMCQ.

Launch mMCQ. diagnostic

Explore mMCQ.

MDCAT prepFree DiagnosticPricing & SubscribeSign in

Resources

Terms & Conditions

mMCQ.

© 2021 - 2025 mMCQ.All rights reserved.

WhatsApp
O Level Accounting (7707)•7707/11/M/J/23
Question 14 from 7707/11/M/J/23

Explanation

Ambiguous ledger entry details Steps:

  • The partly completed account lists Dec 1 balance b/d 720(likelycreditforcreditorscontrol)andDec31bank720 (likely credit for creditors control) and Dec 31 bank 720(likelycreditforcreditorscontrol)andDec31bank42,000 (likely debit for payment), yielding net debit balance of $41,280.
  • Add interest charged: credit 15,adjustingtodebitbalanceof15, adjusting to debit balance of 15,adjustingtodebitbalanceof41,295.
  • Record set-off: debit 450(reducinganyowingportion),adjustingtodebitbalanceof450 (reducing any owing portion), adjusting to debit balance of 450(reducinganyowingportion),adjustingtodebitbalanceof41,745.
  • The large debit balance contradicts small positive choices; bank amount or sides may be misstated.

Why B is correct:

  • Not applicable due to ambiguity.

Why the others are wrong:

  • A and C ($655): Likely from miscalculating adjustments without full details.
  • D ($685): Duplicate of B, but same issue.

Not enough information. Final answer: Not enough information.

Topic: Control accounts

Practice more O Level Accounting (7707) questions on mMCQ.me