O-LevelAccountingAccounting procedures7707/11 · Oct/Nov 2012 · Q91 Mark
At the end of Leroy's financial year it was decided that the balance on the telephone expenses account, $340, should be split 90% for business use and 10% for personal use. Which journal entry records the closing of the telephone expenses account at the end of the financial year?
Adebit: drawings $34, income statement $306; credit: telephone expenses $340
Bdebit: drawings $34, telephone expenses $306; credit: income statement $340
Cdebit: income statement $340; credit: drawings $34, telephone expenses $306
Ddebit: telephone expenses $340; credit: drawings $34, income statement $306
✓ Correct answer
A: debit: drawings $34, income statement $306; credit: telephone expenses $340
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