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In a Kaplan question they ask for a Bank Account Ledger to be corrected Originally they have rental income simply stated as 1,300 and it’s on the CR side. The question does not state if this is an increase or decrease in Income. However, in their corrected version they enter it as a Dr.
I thought increases in Income (or where income is not stated as up or down) are always recorded as Cr not Dr entries or I am missing something?
Actually, logically it must be an DR in the bank account (increase in income) and a CR in the Income Account (Rent Received). Is this correct? Silly mistake, but it didn’t reference another account, so I assume this must be the case?
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