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A debit balance is brought down on a T account to start the new accounting year. It is suggested that the debit balance might exist

A debit balance is brought down on a T account to start the new accounting year. It is suggested that the debit balance might exist for any of the following reasons: 1) An overdraft 2) A prepayment 3) An allowance for trade receivables 4) Accumulated losses in retained earnings 5) Accumulated depreciation of buildings Identify which two of these statements are valid? 2 marks

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