The year-end Trial Balance as at 31 December reports a staff loan of 10,000 as an asset.
Question:
The year-end Trial Balance as at 31 December reports a staff loan of £10,000 as an asset. Monthly recoveries of £500 made from pay-sheet, from August, should be accounted for as:
(a) Debit Cash Book, credit Staff loan a/c with £2,500
(b) Debit Staff loan, a/c credit Cash Book with £2,500
(c) Debit Salaries account, credit Staff loan account with £2,500
(d) Debit Staff loan account, credit Salaries account with £2,500
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Related Book For
Financial Accounting An Introduction
ISBN: 9780273737650
2nd Edition
Authors: Mr Barry Elliott, Mr Augustine Benedict
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