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Forums › ACCA Forums › ACCA FA Financial Accounting Forums › Double entry bookkeeping
Apologies if this comes across as very straightforward and simple. I’m looking at some double entry test questions.
Q: During the year, Ferguson made the following accounting entries to account for the depreciation charge relating to motor vehicles:
– Debit Accumulated depreciation – motor vehicles $5,000
– Credit Depreciation expense – motor vehicles $5,000
A:
– Debit Depreciation expense $10,000
– Credit Accumulated depreciation $10,000
Am I right in saying that the above answer is a correction, as in it’s cancelling out the incorrect booking made by Ferguson and then accounting for it correctly?
Yes – what you have written is correct 🙂
The answer is the correcting entry.
Thanks John 🙂
You are welcome 🙂
(In future please ask in the Ask the Tutor Forum if you want me to answer – this forum is for students to help each other 🙂 )