O-LevelAccountingVerification of accounting records7707/11 · Oct/Nov 2017 · Q141 Mark
Mona paid $32000 for a new motor vehicle. This included $100 for fuel and $250 for road tax. She debited the purchases account and credited the cash book with $32000. Which journal entry corrects this error?
Adebit motor vehicle $32000, credit purchases $32000
Bdebit purchases $32000, credit motor vehicles $32000
Cdebit motor vehicles $31650, motor vehicle expenses $350, credit purchases $32000
Ddebit purchases $32000, credit motor vehicles $31650, motor vehicle expenses $350
✓ Correct answer
C: debit motor vehicles $31650, motor vehicle expenses $350, credit purchases $32000
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