A bookkeeper has debited an asset account for $3,500 and credited a liability account for $2,000.Which of the following would be an incorrect way to complete the recording of this transaction:
A)Credit another asset account for $1,500.
B)Credit another liability account for $1,500.
C)Credit a revenue account for $1,500.
D)Credit the common stock account for $1,500.
E)Debit another asset account for $1,500.

Question

Quizplus · Accepted Answer

The total debits and credits must balance in a transaction. Options A, B, C, and D involve crediting accounts to balance the initial debit, which is correct. Option E incorrectly suggests debiting another account, which would unbalance the transaction.

A Bookkeeper Has Debited an Asset Account for $3,500 and Credited