Accounting for IGCSE & O level - Accounting Procedures (Section 2 - No. 25)
What will the correct accounting entry be if an expenditure is mistakenly recorded in the bank account rather than the correct expenses account? (The expense account has to be debited and the bank account has to be credited.)
Credit the bank account and debit the suspense account.
Debit the bank account and credit the suspense account.
Debit the expense account and credit the bank account.
Credit the bank account and debit the expense account.
Explanation
The correct entry requires debiting the expense account and crediting the bank account to reverse the initial error.
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