Question 2: This question provides evidence against CILO 2 (25 marks) Alwarqa Computers is...
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Accounting
Question 2: This question provides evidence against CILO 2 (25 marks)
Alwarqa Computers is a small business that sells and repairs electronic devices and its accessories. Alwarqa Computers optionally chose to register for VAT.
Alwarqa Computers acquired a printer to use it in the business for BD 400 plus VAT, the payment of which was made by a check. The accountant made the below incorrect entry to record the transaction of the acquisition.
Ledger Account
Debit(BD)
Credit(BD)
Printer
420
Cash
420
In the below box, explain to the accountant, why the entry is incorrect. (2 marks)
Write your answer here:
Prepare the correct entry to record the acquisition of the printer. (3 marks)
Ledger Account
Debit (BD)
Credit (BD)
Answer & Explanation
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