Accounting 0452 · IGCSE · Correction of errors

Correction of errors — practice question

Insurance paid by credit transfer was recorded in the accounting records as $86 instead of $68. Which double entry would rectify this error?

  • Aaccount debited: bank \$18; account credited: insurance \$18
  • Baccount debited: bank \$68; account credited: insurance \$68
  • Caccount debited: insurance \$18; account credited: bank \$18
  • Daccount debited: insurance \$68; account credited: bank \$68

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