FINANCIAL ACCOUNTING

MULTIPLE CHOICE QUESTION

Question 18 of 20

3.0 Points

A debtor of Smako Traders, Mrs T Ngcobo, issued a cheque for R1 000 in part payment of her account which was subsequently recorded in the cash receipts journal of Smako Traders. However, her cheque was dishonoured by the bank due to insufficient funds in her account.

Which one of the following represents the correct ledger entries in the books of Smako Traders for the cheque after it was dishonoured?

A.

General ledger		Subsidiary ledger		Amount R
Account to be debited	Account to be credited	Debit	Credit
Bank	Trade receivables control	Mrs T Ngcobo		1 000

B.

General ledger		Subsidiary ledger		Amount R
Account to be debited	Account to be credited	Debit	Credit
Credit losses	Trade receivables control	Mrs T Ngcobo		1 000

C.

General ledger		Subsidiary ledger		Amount R
Account to be debited	Account to be credited	Debit	Credit
Trade receivables control	Bank		Mrs T Ngcobo	1 000

D.

General ledger		Subsidiary ledger		Amount R
Account to be debited	Account to be credited	Debit	Credit
Bank	Trade receivables control		Mrs T Ngcobo	1 000

E.

General ledger		Subsidiary ledger		Amount R
Account to be debited	Account to be credited	Debit	Credit
Trade receivables control	Bank	Mrs T Ngcobo		1 000

.