Multiple choice

An incorrect journal entry is made by posting amount paid for servicing vehicle to motor vehicle account. Which of the following entries can be made to correct the previous entry?

  1. Debit motor vehicle account and credit vehicle maintenance account

  2. Debit vehicle maintenance account and credit cash account

  3. Debit cash account and credit motor vehicle account

  4. Debit vehicle maintenance account and credit motor vehicle account

  5. Entry cannot be corrected
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Motor vehicle entry needs to be reduced by making credit entry and debit the vehicle maintenance account.

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