O-LevelAccountingAccounting procedures7707/12 · May/June 2015 · Q91 Mark

Ali's financial year ends on 31 March. During the year ended 31 March 2015 Ali paid wages of $42500. On 31 March 2015 $1400 wages were accrued. Which journal entry records the transfer from the wages account to the income statement on 31 March 2015?

Adebit $42500 income statement, credit $42500 wages

Bdebit $43900 income statement, credit $43900 wages

Cdebit $42500 wages, credit $42500 income statement

Ddebit $43900 wages, credit $43900 income statement

✓ Correct answer

B: debit $43900 income statement, credit $43900 wages

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2015 Paper 1 Variant 2, question 9.

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