A-LevelAccountingProvision for Doubtful DebtsOct/Nov 2021Paper 1 Q91 Mark
Brian had a service business which held no inventory. His current assets and current liabilities at 1 April were as follows. $Trade receivables: 10000 Trade payables: 6100 Bank overdraft: 1900 On that date he set off a sales ledger balance, $600, against a purchases ledger balance and then created a provision for doubtful debts of 5%. What was the value of his working capital after these adjustments?
A$1470
B$1500
C$1530
D$1900
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of provision for doubtful debts within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep