The accountant of Leo Ltd. recorded a payment by cheque to a creditor for supply of materials as 1,340.56. The bank recorded the cheque at its correct amount of 3,140.56. The Company has not passed any rectification entries and the error is not detected through the bank reconciliation. The impact of this error is

✅ D. Depreciable value

Option A : Scrap value Option B : Residual value Option C : Market value Option D : Depreciable value Correct Answer : Depreciable value Read more

✅ A. Credited to P&L A/c

Option A : Credited to P&L A/c Option B : Debited to P&L A/c Option C : Reduced from debtors in Balance Sheet Option D : Added to debtors in Balance Sheet Read More Details about this Mcq Correct Answer : Credited to P&L A/c Read more

✅ B. Balance Sheet

Option A : Income Statement Option B : Balance Sheet Option C : Cash Flow Statement Option D : Retained Earning Statement Correct Answer : Balance Sheet Read more

✅ C. Debtors journal

Option A : Cash journal Option B : Purchase journal Option C : Debtors journal Option D : Sales journal Correct Answer : Debtors journal Read more

✅ D. Both and B.

Option A : Cheque issued but not presented Option B : Cheque issued but dishonoured Option C : Cheque deposited and credited by bank Option D : Both and B. Correct Answer : Both and B. Read more

✅ C. 3

Option A : 4 Option B : 2 Option C : 3 Option D : 5 Correct Answer : 3 Read more

✅ B. Debit balance of Provision for Bad Debts Account

Option A : Credit balance of Provision for Bad Debts Account Option B : Debit balance of Provision for Bad Debts Account Option C : Debit balance of Bad Debts Account Option D : Debit balance of Discount on Debtors Account Correct Answer : Debit balance of Provision for Bad Debts Account Read more

✅ D. $3000 will be subtracted from cash book balance

Option A : $1000 will be added to cash book balance Option B : $2000 will be deducted from cash book balance Option C : $3000 will be added to cash book balance Option D : $3000 will be subtracted from cash book balance Correct Answer : $3000 will be subtracted from cash book balance Read more