Amount paid to Masood posted to the credit side of his account would affect___________?
Correct answer: A. Masood's account
- A. Masood's account
- B. Cash account
- C. Cash account and Gagan's account
- D. None of these
Explanation
Posting an amount to the credit side of Masood's personal account directly changes Masood's account, regardless of whether that posting is correct. A genuine payment to a creditor would normally debit Masood and credit Cash.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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