Chris runs a business as a conference organiser and in the period ran a major conference which earned fees of £60000 of which £55000 was received in advance. Of the remaining £5000 all except £400 is collectable. He paid out £12000 on account for venue hire and still owes £2000. In addition he owes £900 for catering and also owes money for internet charges which he estimates to be around £600 although the bill for this has yet to be received. What are the balances on the receivables and payables accounts at the end of the period?
A) Receivables £60000, payables £12 900, accruals £600
B) Receivables £5000, payables £2 900, accruals £600
C) Receivables £5000, payables £2000, accruals £1 500
D) Receivables £4 600, payables £2 900, accruals £600
E) Receivables £4 600, payables £2000, accruals £600

Question

Quizplus · Accepted Answer

Receivables account: 
- £55,000 was received in advance
- £400 is still collectable from the remaining £5,000 
Total = £55,400

Payables account: 
- £12,000 paid for venue hire 
- £2,000 still owed for venue hire 
- £900 owed for catering 
- Estimated £600 for internet charges 
Total = £15,500

Accruals account: 
- Estimated £600 for internet charges 
Total = £600

Therefore, the correct answer is D) Receivables £4,600, payables £2,900, accruals £600.

Chris Runs a Business as a Conference Organiser and in the Period