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NABTEB Accounting 2020 Objective — Question 23

Question 23 of 50 from the National Business and Technical Examinations Board (NABTEB) Accounting 2020 Objective paper, with the correct answer and a full explanation.

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One of the items on the debit side of a sales ledger control account is

  • A. bills accepted by debtors
  • B. bills dishonoured by debtorsCorrect
  • C. returns inwards
  • D. bad debts

Explanation

Any transaction that increases the debt (e.g. a dishonoured cheque/bill) is recorded on the debit side of the sales ledger control account; bills dishonoured by debtors increases what they owe.

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