Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

A company received interest of $8800 during the financial year. At the start of the year, interest of $700 was due, and by the end of the year, $850 was due. Which entry would appear in the interest received account to transfer the figure to the income statement?

  • A$8650 credit
  • B$8650 debit
  • C$8950 credit
  • D$8950 debit

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