A-LevelAccountingAccruals and PrepaymentsOct/Nov 2023Paper 1 Q131 Mark

At a business's financial year-end there were expenses owing, expenses prepaid, income owing and income received in advance. How will the ledger account balances brought down at the start of the new financial year appear in the general ledger?

Q: What topic does this question test?

This question tests Accruals and Prepayments in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Adebit balances: expenses owing, income owing; credit balances: expenses prepaid, income received in advance

Bdebit balances: expenses owing, income received in advance; credit balances: expenses prepaid, income owing

Cdebit balances: expenses prepaid, income owing; credit balances: expenses owing, income received in advance

Ddebit balances: expenses prepaid, income received in advance; credit balances: expenses owing, income owing

✓ Correct Answer

The correct answer is C: debit balances: expenses prepaid, income owing; credit balances: expenses owing, income received in advance

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Accruals and Prepayments in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2023 examination, Paper 1 Variant 2.

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