ICAEW AF · Chapter 6 · Question 2 of 9
Which of the following would be recorded in the receivables control account?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A cheque received from a credit customer that has been dishonoured
Explanation
A dishonoured cheque reinstates the customer's debt, so it is debited to the receivables control account. The allowance for receivables is kept in a separate account and deducted from receivables only on the statement of financial position. Cash sales never pass through receivables, and discounts received relate to payables.
More Control accounts MCQs
- Q4The total of the list of balances in a business's payables ledger is £18,640, which does not agree with the payables control account. The…
- Q5A business both buys from and sells to Fenwick Ltd. It agrees to set off the £1,250 Fenwick owes it against the £3,400 it owes Fenwick…
- Q6Which of the following is a main purpose of maintaining a receivables control account?
- Q7The sales day book for June was undercast by £500. The individual customer accounts were posted correctly. What correction is required?
- Q8A business's receivables control account shows a balance of £41,370, while the list of individual customer balances totals £40,170…