Paper 2 · Depreciation and disposal of non-current assets
In C. William's Stationery Account for 2011, an entry of 'Profit and Loss $3 100' appears on the credit side at 31 December. What does this entry represent?
AStationery bought on credit during the year
BStationery used during the year, transferred to the Profit and Loss Account
CBalance of stationery unused at the end of the year
DBalance of stationery brought forward from the previous year
Explanation: Crediting the Stationery Account and debiting Profit and Loss with $3 100 charges the value of stationery consumed during the year as an expense for the year.
Derived from ZIMSEC Principles of Accounts 7112/2 Paper 2, November 2014 Specimen Paper, Q2
