TRUE AND FALSE QUESTIONS Identify whether the above situation is true or false. 1. In a double entry system, a debit is used to record increase in asset and revenue, decrease in liability, expenses and capital. 2. Amira, who has a business of selling jewellery, sold a bracelet to her daughter, Anis costing RM50,000 on credit. This should be recorded as debit Debtor Anis, credit sales account. 3. The double entry for RM500 cash taken from the cash in hand and deposited into the bank is debit cash RM500, credit bank RM500. 4. The objective of preparing the trial balance is to identify whether the company is making profit or loss during the year ended. 5. After all transactions have been recorded, the accounts can now be balanced off to determine the closing balance of the account