Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A debtor who was declared insolvent was able to pay R630 of the amount owing, which represented 70% of his debt. The balance of his

image text in transcribedimage text in transcribed

A debtor who was declared insolvent was able to pay R630 of the amount owing, which represented 70% of his debt. The balance of his account must be written off. Which one of the following statements is false? Select one: a. Equity will decrease by R270. b. Debtors control will decrease by R900. C. The bank balance will increase by R630. d. The bad debt amounts to R189. When adjustments are recorded at the end of a financial year, which of the following results in an increase to the nominal account concerned? i) Accrued expenses ii) Accrued income iii) Consumable inventory iv) Prepaid expenses Select one: a. i), ii) and iii) b. i) and ii) only c. ii) and iii) only O d. i), ii), iii) and iv)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Effect Of The Internal Auditing On Financial Performance

Authors: Shakir Al Ghalayini, Mohammed A. Keshta, Thabet M. Hassan

1st Edition

3656943052, 978-3656943051

More Books

Students also viewed these Accounting questions

Question

What is job rotation ?

Answered: 1 week ago