O-LevelAccountingAccounting procedures7707/11 · May/June 2011 · Q91 Mark

Ann is a trader. On 1 April 2011 Cindy's account in Ann's ledger showed a credit balance of $520. The following transactions took place during April 2011. April 2 Ann returned goods, $30, to Cindy 14 Ann bought goods, $210, from Cindy, and paid in cash Which statement is true about the balance on Cindy's account in Ann's ledger on 30 April 2011?

AAnn owes Cindy $490.

BAnn owes Cindy $700.

CCindy owes Ann $490.

DCindy owes Ann $700.

✓ Correct answer

A: Ann owes Cindy $490.

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2011 Paper 1 Variant 1, question 9.

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