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WAEC Financial Accounting 1998 Question 16

Question 16

Company Accounts

Which of the following has a debit balance? I. Calls-in arrears II. Calls-in-advance III. Share discount

  1. A.I. only
  2. B.II only
  3. C.III only
  4. D.I and III only
  5. E.II and III only.
Show the answer and explanation

Answer: D (I and III only)

Explanation

Calls in arrears (money still owed by shareholders) and share discount are debit balances; calls in advance is a credit (liability).