With respect to final accounts, which of the following statements is correct?

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Economics · Accounting

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Correct answer

The provision for discount on creditors is not provided in keeping with the principle of conservatism.

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Answer 1

Debts written off as bad, if recovered subsequently, are credited to the debtor's account.

Answer 2

The adjustment entry in respect of income received in advance is to debit the income received in advance account and credit the income account.

Answer 3

The provision for bad debts is debited to the sundry debtors account.

Answer 4

The provision for discount on creditors is not provided in keeping with the principle of conservatism.

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