Question4

4.1 An interest expense, charged by a businesss creditor for non-payment, would be recorded by the business as:

Select one:

a. A debit in our debtors ledger

b. A credit in the creditors ledger

c. A credit in our debtors ledger

d. A debit in the creditors ledger

4.2 What would the correct permutations be of a supplier issuing a credit note to a customer who had previously bought goods on credit?

Select one:

a. The supplier increasing debtors, and the customer increasing creditors

b. The supplier decreasing creditors, and the customer decreasing debtors

c. The supplier decreasing debtors, and the customer decreasing creditors

d. The supplier increasing creditors, and the customer increasing debtors