Question

An accountant has debited an asset account for $5,000 and credited a revenue account for $10,000. What can be done to complete the recording of the transaction?a) Nothing further can be doneb) Credit a shareholders equity account for $5,000c) Debit another asset account for $5,000d) Credit an asset account for $5,000

Answer 1

Answer:

c) Debit another asset account for $5,000

Explanation:

Data provided in the question

Debited an asset account = $5,000

And, the revenue account credited = $10,000

Based on the above information

As we know that

Accounting equation is

Total assets = Total liabilities + total stockholder equity

Since both the account has difference balance so to balance them we have to debit another asset of $5,000 so the total balance of asset is $10,000 i.e equal to the revenue account i,e $10,000

Hence, the correct option is c.