Raja Limited
has a balance sheet date of 31 December 2020. The financial statements of the
company were authorised for issue on 31 March 2021.On 12 February 2021, the
company settled a negligence claim of $38,000 lodged by one of its customers.
The claim was made on 26 October 2020 by a customer who was hurt when tools in
the repair workshop accidently fell on the customer. The settlement of
negligence on 12 February 2021 is:

Question

Answer

An adjusting event requiring the following journal entries: Dr Negligence claim expense $38,000 Cr Negligence claim payable $38,000

Answer

A non-adjusting event requiring note disclosure.

Answer

A non-adjusting event requiring the following journal entries: Dr Negligence claim expense $38,000 Cr Bank $38,000

Answer

An adjusting event requiring the following journal entries: Dr Negligence claim expense $38,000 Cr Bank $38,000

Crowdly

Raja Limited has a balance sheet date of 31 December 2020. The financial statem...

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