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The breakdown of glucose by microorganisms to produce ethanol and CO₂ is called:
Alcoholic fermentation (by yeast) converts glucose → ethanol + CO₂. Lactic acid fermentation (by some bacteria, muscle cells) produces lactate.
Sales ledger control account balance at end of July: $20,000. During August: Credit sales $150,000; Receipts from customers $135,000; Returned (dishonoured) cheques $5,000; Returns inwards $11,000. What was the closing balance?
Option C ($29,000) is correct.
Opening $20,000 + Credit sales $150,000 + Returned cheques $5,000 − Receipts $135,000 − Returns inwards $11,000 = $29,000
Dishonoured cheques are added back as the debt is reinstated.
1. Carriage Out: Debit side too high by $90 (Correction: Credit Suspense $90).
2. Purchases Returns: Credit side (returns) too high by $100 (Correction: Debit Suspense $100).
3. Wrong Person: No effect on Suspense (Debit/Credit match).
4. Rent: Income ($350 Cr) put in Expense ($350 Dr). Total error is $700 on debit side (Correction: Credit Suspense $700).
Net correction: $90 (Cr) - $100 (Dr) + $700 (Cr) = $690 Credit. To clear this, the opening balance must have been $690 Credit.
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