O-LevelAccountingSources and recording of data7707/12 · Oct/Nov 2025 · Q41 Mark

An account in the purchases ledger of X Limited has a debit balance. What does this balance represent?

Aan amount owed by X Limited

Ban amount paid to X Limited

Cprepayment made by X Limited

Dtotal purchases made by X Limited

✓ Correct answer

C: prepayment made by X Limited

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Topic: Sources and recording of data, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2025 Paper 1 Variant 2, question 4.

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