Show how the following transaction will be recorded apply...
Show how the following transaction will be recorded applying the double-entry principle:
Rent ₦50,000 was paid by Mr. Roi to his landlord on 1st July 2017 by cheque.
Dr Rent A/c; Dr Bank A/c
Dr Bank A/c; Cr Rent A/c
Dr Rent A/c; Cr Bank A/c
Dr Rent A/c; Cr Mr. Roi
Correct answer is C
In the double-entry principle, we debit income and credit expenses.
The rent account will be debited with the sum of #50,000 in regards to the landlord (because money has been paid in as rent, e.i income), while the bank column will be credited with N50,000 (money has gone out of Mr. Rio bank account via the cheque that was issued to the landlord)
\(\begin{array}{c|c} & J. Chike & B. Balla \\ & N & N \\ \hline \text{Current Accoun...
Which of the following may cause depreciation? i. wear and tear ii. obsolescence and p...
In the trading and profit and loss account of a manufacturing organization, purchases is? ...
Entries in the purchase journal are transferred to the ............. ...
\(\begin{array}{c|c} & Ade(N) & Bola(N) \\ \hline Capital & 40,000 & 30,000 \\ \hlin...
A company advertised and issued 750,000, 12% preference shares of N1 each to be issued ₦1.50 ...
When expenses are paid on behalf of the venture, the accounting entries is to debit ...