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

Question

Nathaly Barajas

Business

21 October, 13:42

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

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Answers (1)

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Kinley · Answer 1

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.