Question
Selly is a sole trader who trades on a gross margin of 25%. During the year ended 31 October 20X9. Tim took some goods from
Selly is a sole trader who trades on a gross margin of 25%. During the year ended 31 October 20X9. Tim took some goods from stock for his own use. These would have retailed at 260. Selly posted the following journal for this transaction as he was unsure of the correct entry Debit Drawings 260, Credit Suspense 260 Which of the following correcting journal should Selly now process?
A Debit Suspense 260, Credit Purchases 260
B Debit Purchases 260, Credit Drawings 260
C Debit Suspense 260, Credit Drawings 52, Credit Purchases 208
D Debit Suspense 260, Credit Drawings 65, Credit Purchases 195
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