The purchase of office equipment was incorrectly posted to the office consumables account. The (1) correcting entry in the general journal will be: (a) Dr Equipment and Cr Office Consumables; (b) Dr Office Consumables and Cr Equipment; (c) Dr Office consumables and Cr Bank; (d) Dr Equipment and Cr Bank.
8. The purchase of office equipment was incorrectly posted to the office consumables account. The (1) correcting entry in the general journal will be:
(a) Dr Equipment and Cr Office Consumables;
(b) Dr Office Consumables and Cr Equipment;
(c) Dr Office consumables and Cr Bank;
(d) Dr Equipment and Cr Bank.
9. A business will offer goods on credit for the following reason(s): (1)
i To increase sales volumes;
ii To charge interest;
iii To enable repeat purchases from their customers;
iv To allow discount.
(a) i and ii;
(b) i and iii;
(c) ii and iii;
(d) ii and iv.
10. When a debtor is declared insolvent and the debt is written off as irrecoverable, the assets of the (1) business will:
(a) Increase and decrease;
(b) Increase;
(c) Decrease;
(d) Remain unchanged.
"Since you have asked multiple questions, we will solve first question for you. If you want any specific question to be solved then please specify the question number or post only that question."
The journal entries are prepared to keep the record of day to day transactions of the business on regular basis.
The assets and expenses are debited with increase in balance and liabilities and revenue are credited with increase in balance.
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