Mark sold goods on credit to Paul for $5000. Paul returned goods costing $200 to Mark.
What were the balances in Paul's ledger accounts after these transactions?
| | purchases account $ | purchases returns account $ | Mark account $ |
|---|---|---|---|
| A | 4800 credit | 200 credit | 5000 debit |
| B | 4800 debit | 200 debit | 5000 credit |
| C | 5000 credit | 200 debit | 4800 debit |
| D | 5000 debit | 200 credit | 4800 credit |

Q: What topic does this question test?

This question tests Sources and recording of data in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge O-Level Accounting Oct/Nov 2017 examination, Paper 1 Variant 2 (7707_w17_qp_12.pdf).

Question

Mark sold goods on credit to Paul for $5000. Paul returned goods costing $200 to Mark.
What were the balances in Paul's ledger accounts after these transactions?
| | purchases account $ | purchases returns account $ | Mark account $ |
|---|---|---|---|
| A | 4800 credit | 200 credit | 5000 debit |
| B | 4800 debit | 200 debit | 5000 credit |
| C | 5000 credit | 200 debit | 4800 debit |
| D | 5000 debit | 200 credit | 4800 credit |

Oracle Prep · Accepted Answer

The correct answer is D: 5000 debit 200 credit 4800 credit.

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