Qualification > Commerce

Accounting help!!!!!!!!!!!

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elemis:
Question 20

The journal shows the entries that were made to CORRECT the wrong entry. Now debtors are normally DEBITED when we SELL them goods.   

Notice we have credited Jane's account. The ONLY reason we would do that is if we wanted to REDUCE the amount she OWES to the business.

Why would we do that ?

The reason for REDUCING Jane's amount owing is because we recorded that we had sold goods to her when ACTUALLY we DID NOT !!!!

We actually sold goods to John. So we debit his account to INCREASE the amount he owes (remember no entry has been made in his account yet) and we CREDIT Jane to eliminate the amount we recorded her as owing.

Answer = D

elemis:
What didnt you understand in 22 ?

moon:
in Q22 how did u know that bank interested will cause the balance in the bank statement to be higher than that in the cash book?? ???
 thanx 4 ur reply.

elemis:
Bank interest will cause a rise in the cash at bank.

All the other options would DECREASE cash at bank.

moon:
thank u very much 4 ur help :) :) :)

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