Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

A sole trader applies the double entry system to record business transactions. Which transaction does not comply with the double entry rules?

  • AAn expense account is debited at the end of the year when there is an expense prepaid on that date.
  • BThe capital account is credited when the sole trader introduces their personal computer to the business.
  • CThe provision for motor vehicles depreciation account is debited when a motor vehicle is sold.
  • DThe purchases account is credited when the sole trader draws goods from the business.

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