When a service is rendered on credit, the effect will be the following:

(1) Income from services rendered account will decrease and the debtors account will increase.

(2) Income from services rendered account will increase and the debtors account will increase.

(3) Income from services rendered account will increase and the creditors account will increase.

(4) Income from services rendered account will increase and the creditors account will decrease.

(5) Income from services rendered account will decrease and the debtors account will decrease

The following statements relate to general accounting concepts and principles:

(a) If a business entity settles its outstanding account with a creditor, a receipt will be issued by the business receiving the money.

(b) The effect of a cash purchase of equipment on equity is positive.

(c) The general ledger is a book of prime entry.

(d) The general ledger of a business entity is started off from scratch (all accounts with zero balances) at the beginning of each financial year.

(e) Duplicate receipts are used as the source document to record payments received from debtors.

Which one of the following groups correctly reflects all the statements that are true?

(1) (a), (c), (d)

(2) (b), (d)

(3) (a), (d), (e)

(4) (a), (e)

(5) (b), (c), (d)