Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

At the close of a business’s financial year, expenses owing, expenses prepaid, income owing and income received in advance all existed. In the general ledger, how will the ledger account balances brought down at the beginning of the next financial year be shown?

  • ADebit: expenses owing, income owing; Credit: expenses prepaid, income received in advance
  • BDebit: expenses owing, income received in advance; Credit: expenses prepaid, income owing
  • CDebit: expenses prepaid, income owing; Credit: expenses owing, income received in advance
  • DDebit: expenses prepaid, income received in advance; Credit: expenses owing, income owing

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