A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2023 · 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?
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
C: debit balances: expenses prepaid, income owing; credit balances: expenses owing, income received in advance
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