A-LevelAccountingReconciliation and verification9706/12 · Oct/Nov 2020 · Q81 Mark

An invoice for purchases was credited to the purchases account. How will the balance on the purchases account be corrected?

Adecrease by the value of the invoice

Bdecrease by twice the value of the invoice

Cincrease by the value of the invoice

Dincrease by twice the value of the invoice

✓ Correct answer

D: increase by twice the value of the invoice

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Topic: Reconciliation and verification, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2020 Paper 1 Variant 2, question 8.

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