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Maria Makes a Payment of £25,000 to a Trade Payable

Question 42

Multiple Choice

Maria makes a payment of £25,000 to a trade payable from her bank account. Prior to this payment, Maria's bank account showed a positive balance of £45,000. Which one of the following options represents the correct entries to reflect this payment?


A) Increase trade payables £25,000, decrease bank account £25,000.
B) Decrease trade payables £25,000, increase bank account £25,000.
C) Increase trade payables £25,000, increase bank account £25,000.
D) Decrease trade payables £25,000, decrease bank account £25,000.

Correct Answer:

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