In April, Gina Received Credit Notes from Her Suppliers for Equipment

question 19

Multiple Choice

In April, Gina received credit notes from her suppliers for equipment hire services which were ordered and invoiced but never provided. The credit notes total up to £7,200 which includes VAT of 20%. What is the correct double entry to record these credit notes in Gina's books of account?

• A) Debit trade payables control account £7,200, Credit equipment hire £7,200.
• B) Debit cash £7,200, Credit equipment hire £6,000, Credit VAT £1,200.
• C) Debit trade payables control account £7,200, Credit equipment hire £6,000, Credit VAT £1,200.
• D) Debit equipment hire £6,000, Debit VAT £1,200, Credit trade payables control account £7,200.

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Definitions:

Corporate Cover-Ups

involve deliberate attempts by a company to conceal wrongdoing, mistakes, or unethical behavior from the public, regulators, or other relevant stakeholders to protect its reputation and interests.

Noise

Noise is anything that interferes with communication effectiveness.

Nonverbal Signals

Nonverbal signals refer to the ways individuals communicate without using words, including through gestures, facial expressions, posture, and eye contact.