A-LevelAccountingThe accounting cycle9706/12 · Oct/Nov 2010 · Q21 Mark

A customer paid a deposit in advance for goods to be supplied at a later date. How should this be recorded in the seller's books? [Table showing debit and credit entries for options A, B, C, D]

Acash, customer

Bcash, sales

Ccustomer, prepayment

Dcustomer, sales

✓ Correct answer

A: cash, customer

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Topic: The accounting cycle, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2010 Paper 1 Variant 2, question 2.

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