38 - Metal Foreign Trade Limited Company made a loss of 200.000 TL in 2020. The company has 300,000 TL accumulated in the legal reserves account until 2020, and it has been decided to deduct the previous year's losses with legal reserves. In this case, which of the following can be said about the accounting records to be made? A) 580 previous year losses account 300.000 is credited. B) 542 Extraordinary reserves account 200.000 is debited. C) 540 legal reserves account is debited 200,000. D) 591 net loss for the period 200.000 is credited. E) 541 Status reserves account 200.000 is debited.
38 - Metal Foreign Trade Limited Company made a loss of 200.000 TL in 2020. The company has 300,000 TL accumulated in the legal reserves account until 2020, and it has been decided to deduct the previous year's losses with legal reserves. In this case, which of the following can be said about the accounting records to be made? A) 580 previous year losses account 300.000 is credited. B) 542 Extraordinary reserves account 200.000 is debited. C) 540 legal reserves account is debited 200,000. D) 591 net loss for the period 200.000 is credited. E) 541 Status reserves account 200.000 is debited.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
38 - Metal Foreign Trade Limited Company made a loss of 200.000 TL in 2020. The company has 300,000 TL accumulated in the legal reserves account until 2020, and it has been decided to deduct the previous year's losses with legal reserves. In this case, which of the following can be said about the accounting records to be made?
A) 580 previous year losses account 300.000 is credited.
B) 542 Extraordinary reserves account 200.000 is debited.
C) 540 legal reserves account is debited 200,000.
D) 591 net loss for the period 200.000 is credited.
E) 541 Status reserves account 200.000 is debited.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education