Question

The double-entry system requires that each transaction must be recorded a. in two sets of books. b. in a journal and in a ledger c. in at least two different accounts. d. first as a revenue and then as an expense. 11. An accountant has debited an asset account for $1,500 and credited a liability What can be done to complete the recording of the transaction? a. Credit another asset account for S700. b. Credit another liability account for $800. c. Dredit an equity accont for $700. d. Dredit an equity accont for $800. account for $700.

Answer 1

Answer:

Credit an equity account for $800

Explanation:

We assume that the accountant has debited an asset account for $1,500 and credited a liability account for $700 so we have to credit the equity account for $800 to balance the accounting equation

In every balance sheet, the accounting equation has used that means

Total assets = Total liabilities + Shareholder equity

In mathematically,  

$1,500 = $700 + $800

$1,500 = $1,500

Balanced both sides of the balance sheet.