Identify whether the below situation is true or false. 1. In a double entry system,...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Identify whether the below situation is true or false.
1. In a double entry system, a debit is used to record increase in asset and revenue, decrease in liability, expenses and capital.
2. Amira, who has a business of selling jewellery, sold a bracelet to her daughter, Anis costing RM50,000 on credit. This should be recorded as debit Debtor Anis, credit sales account.
3. The double entry for RM500 cash taken from the cash in hand and deposited into the bank is debit cash RM500, credit bank RM500.
4. The objective of preparing the trial balance is to identify whether the company is making profit or loss during the year ended.
5. After all transactions have been recorded, the accounts can now be balanced off to determine the closing balance of the account.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
