BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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‘Paid Wages’ here wages account will be credited. State whether the statement is
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True
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Partially True
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False
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None of the above
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Explanation:
Detailed explanation-1: -Rent is an expense for the business and falls under the category of nominal accounts. Hence, Rent A/c should be debited.
Detailed explanation-2: -Salaries and wages are expenses incurred by the business during an accounting period. Therefore, it has to be shown on the debit side of the profit and loss account.
Detailed explanation-3: -Wages paid to workers must be debited to account.
Detailed explanation-4: -So, Bank A/c will be credited for the given transaction.
There is 1 question to complete.