Cram (Pty) Ltd is a retail business with a financial year end on 31 December 20.20....

  

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Cram (Pty) Ltd is a retail business with a financial year end on 31 December 20.20. On 10 December 2020 the accountant recorded the following journal entry, and it was posted to the ledger: Account name Inventory (?) Bank (SFP) Debit Rand 30 000 Credit Rand 30 000 The amount of R30 000 represents the credit purchases of merchandise from Jaco (Pty) Ltd, a supplier of stationary products for re-sale in retail businesses. Choose the correct element of financial statements which should be debited in the above journal entry. Select one: i. Expense ii. Liability iii. Asset iv. Equity (i) Expense (ii) Liability (iii) Asset (iv) Equity Cram (Pty) Ltd is a retail business with a financial year end on 31 December 20.20. On 10 December 2020 the accountant recorded the following journal entry, and it was posted to the ledger: Account name Inventory (?) Bank (SFP) Debit Rand 30 000 Credit Rand 30 000 The amount of R30 000 represents the credit purchases of merchandise from Jaco (Pty) Ltd, a supplier of stationary products for re-sale in retail businesses. Choose the correct element of financial statements which should be debited in the above journal entry. Select one: i. Expense ii. Liability iii. Asset iv. Equity (i) Expense (ii) Liability (iii) Asset (iv) Equity

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