- 1 Marks
Question
Which of the following is NOT recorded on the credit side of the trade receivables control account?
A. Dishonoured cheque
B. Cash received from customers
C. Cheque received from customers
D. Sales returns
E. Discount allowed
Answer
A. Dishonoured cheque
Explanation:
A dishonoured cheque is not recorded on the credit side of the trade receivables control account; instead, it is recorded as a debit entry because it means the cheque has not been honoured and must be treated as an outstanding receivable.
- Tags: Control Account, Credit Side, Trade receivables
- Level: Level 1
- Topic: Control Accounts
- Series: MAR/JULY 2020
- Uploader: Theophilus