Reference no: EM132782396
Problem 1: Bank charges of P800 has been debited to the rent expense account. The cash in bank account was correctly credited. What is the journal entry to correct the error?
Debit Credit
a. Rent Expenses P800 Bank Charges P800
b. Bank Charges P800 Rent Expenses P800
c. Bank Charges P1,600 Rent Expenses P1,600
d. Rent Expenses P1,600 Bank Charges P1,600
Problem 2: Suppose a sole proprietor settles the rental expenses of the entity amounting to P10,000 through his personal bank account. The journal entry should be:
Account to be credited Account to be debited
a. Rental expense Capital
b. Rental expense Bank
c. Rental expense Cash
d. Rental expense Drawings
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