Gum Ltd Maintains Subsidiary Ledgers for Debtors and Creditors

question 16

Multiple Choice

Gum Ltd maintains subsidiary ledgers for debtors and creditors. At 1 July 2018, debtors owed $4 000, and creditors were owed $7 200. Transactions for year ended 30 June 2019 were as follows: What was the balance of the debtors' control account at 30 June 2019?

• A) $3 000
• B) $7 000
• C) $10 000
• D) $14 000

---

Definitions:

Compulsory Licence

A directive by the Commissioner of Patents requiring the patentee to license others to produce a product for the general benefit of the public.

Beneficiary

A person designated to receive benefits from an insurance policy, trust, or will upon certain conditions, such as the death of the policyholder.

Patent Holder

An individual or entity that legally owns the rights to an invention or process granted by a patent.

Patent Pending

A status indicating that a patent application has been filed but not yet granted.