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?
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. This question tests the candidate's understanding of accruals and prepayments 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...
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