Which of the following accounts is debited when a delivery van is sold for cash?
Sales account
Delivery van account
Cash account
Profit and loss accounts
Correct answer is C
if there was a Loss on sale, we Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset.
if there was a Gain on sale. Debit cash for the amount received, debit all accumulated depreciation, credit the fixed asset, and credit the gain on sale of asset account.
Cash is received and expected to be debited going by the principles of double entry.
Keeping records under single entry system has the advantage of
Quality in terms of records
Simplicity in terms of operation
Accuracy in terms of operation
Completeness in terms of records
Correct answer is B
Advantages Of Single Entry System. Single entry system does not need any special accounting knowledge and personnel to record financial transaction of the business. It can be maintained easily by the business owner. So, this system of book-keeping is simple to maintain and easy to practice.
27,150
43,350
16,200
34,350
Correct answer is A
No explanation has been provided for this answer.
A sales for N2,570 was recorded in the sales day book as N2750. The error committed was
Error of principle
Error of commission
Error of original entry
Compensating error
Correct answer is C
An error of original entry occurs when an incorrect amount is posted to the correct account. A particular example of an error of original entry is a transposition error where the numbers are not entered in the correct order. This type of error deals directly with the wrong use of figures
N1,500
N3,000
N1,800
N2,000
Correct answer is C
No explanation has been provided for this answer.