Which of the following is the correct treatment on the worksheet for the nominated item?
A) GST payable account, credit the income statement and credit the balance sheet.
B) Depreciation account, debit the balance sheet and credit the adjustments.
C) Cash at bank account, credit the adjustments and debit the balance sheet.
D) Profit earned, debit the income statement and credit the balance sheet.

Question

Quizplus · Accepted Answer

Profit earned is recorded by debiting the income statement to recognize the income and crediting the balance sheet to reflect the increase in equity.

Which of the Following Is the Correct Treatment on the Worksheet