7 - Which account is wrong to use in the above record ? a)643 Commission Income Hs. B)600 Domestic Sales Hs. NS)642 Interest Income Hs. D)680 Non-Working Part Expenses and Losses Hs. TO)679 Other Extraordinary Income and Profits Es. .../.../201.Debtreceivable100.000600 Domestic Sales Hs.40.000642 Interest Income Hs.20.000679 Other Extraordinary Income and Profits Es.680 Non-Working Part Expenses and Losses Hs.5.000690 Profit or Loss for the Period Hs.165.000

Answered: Which account is wrong to use in the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

7 -

Which account is wrong to use in the above record ?

a)	643 Commission Income Hs.

B)	600 Domestic Sales Hs.

NS)	642 Interest Income Hs.

D)	680 Non-Working Part Expenses and Losses Hs.

TO)	679 Other Extraordinary Income and Profits Es.

.../.../201.
Debt
receivable
100.000
600 Domestic Sales Hs.
40.000
642 Interest Income Hs.
20.000
679 Other Extraordinary Income and Profits Es.
680 Non-Working Part Expenses and Losses Hs.
5.000
690 Profit or Loss for the Period Hs.
165.000

Expert Solution

Step 1

Closing entries -All the temporary accounts are to be closed at the end of the period so that profit can be moved to Balance sheet so that financial Position of the company for the period can be determined.

All the Expenses & losses have debit balance and all sales and income have Credit Balance. In order to close the Accounts of Expenses and Losses it should be Credited . Sales and Income it should be Debited.