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Cash received for services rendered will?

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Question ajoutée par Ahmed Hassanin CMA , Financial Planning and Controlling Manager , Methode Electronics
Date de publication: 2015/07/03
Wasim khan wazir
par Wasim khan wazir , Finance Specialist , Mott Macdonald

Option D.,,,,,,,,,,,,,,,,,,,,,,,,,

Shahbaz Hayder
par Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Out of available options option D is the right answer.

ayaz sattar
par ayaz sattar , accounts and exports controller , NAS TRADING & EXPORTS

Cash received for services rendered will increase the cash and equity.

Wodeya David
par Wodeya David , Administrative Assistant , Tumewoks investments Ltd

it will increase cash and equity since it is income

G M Masudur Rahman
par G M Masudur Rahman , Manager Accounts & Finance , Noman Group of Industries

D will be answer..............................................

lakshminarasimham mallareddi
par lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

Correct Answer is A) Increase cash and liability if cash received for services rendered.

Charles Reis
par Charles Reis , Founder and Principal Audit Consultant , Panalto Consulting

The above answers would only make sense if the question was re-written like this:

"Cash received IN ADVANCE for services YET to be rendered will" etc. 

 

As the question is written, all of the alternatives are incorrect.

Utilisateur supprimé
par Utilisateur supprimé

It will increase cash and the equity.

The journal entry should be:

Cash (Dr)                    x,xxx.xx

     Service Income (Cr)                   x,xxx.xx

 

Service Income is part of Equity.

Utilisateur supprimé
par Utilisateur supprimé

D) Increase Cash and Equity ............................................................. cash received for services will form part of the organisation revenue which intend will contribute to the ascertainment of retained earnings after expense deduction. Retained earnings will be added to stated capital hence increase in equity.

Michael Lagunday
par Michael Lagunday , Accounts Assistant , Invest Group Overseas LLC

My answer is D. Increases cash and equity

 

Cash received for services rendered is recorded through debit to cash and credit to sales (closed to equity).