The financial statements of Domino’s in the appendix at the back of this book contain the following selected accounts, all in thousands of dollars: 

Required

(a) What is the increase and decrease side for each account? What is the normal balance for each account?

(b) Identify the probable other account in the transaction and the effect on that account when:

1. Accounts Receivable is decreased.

2. Accounts Payable is decreased.

3. Prepaid Expenses (Prepayments) is increased.

(c) Identify the other account(s) that ordinarily would be involved when:

1. Marketing Expense is increased.

2. Property, Plant and Equipment is increased.

Transcribed Image Text:

Issued Capital Trade and Other Payables (Accounts Payable) Trade and Other Receivables (Accounts Receivable) Marketing Expenses Prepayments (in Note 21) Property, Plant and Equipment (net book value) Revenue from Sale of Goods (in Note 5) 2013 $'000 40 855 38 055 26412 11 430 4136 49 693 182 000