Answer to Question #206136 in Accounting for twinkle

Question

2.    A partner’s private petrol bills have been treated as part of the partnership’s motor vehicle expense. Which of the following entries is necessary to correct the error?

a.    Debit    Drawings accounts.

Credit   Motor vehicle expense account

 

b.    Debit    Capitalaccount

Credit   Motor vehicle expenses account

 

c.     Debit    Motor vehicle expense account

Credit   Capital account

 

d.    Debit    Motor vehicle account

Credit   Drawings account

 

 

 

Answer 1

The error committed here is an error of principle. The partnership's motor vehicle expense account has been debited and creating a balance greater than it's credit side. The partner's drawings account should have been debited instead.

Error: Principle

Correction:

Debit: Drawings accounts

Credit : Motor vehicle expense account

Option (a)