Multiple choice

Repair charges of Rs. 500 for building are incorrectly charged to the building account. Which rectifying entry needs to be passed?

  1. Dr. building account Rs. 500 and Cr. repairs account Rs. 500

  2. Dr. repairs account Rs. 500 and Cr. building account Rs. 500

  3. Dr. suspense account Rs. 500 and Cr. repairs account Rs. 500

  4. Dr. building account Rs. 500 and Cr. suspense account Rs. 500
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The expense is a revenue expense so we need to debit the account of expense and not the asset .

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