Ellissa Chembe is a sole trader trading as Ellissa Traders. On 30 June 2024 she paid the insurance expense of R6 500 for the month in cash.

How will the transaction be recorded in the general ledger of Ellissa Traders?

Question

Ellissa Chembe is a sole trader trading as Ellissa Traders. On 30 June 2024 she paid the insurance expense of R6 500 for the month in cash.

How will the transaction be recorded in the general ledger of Ellissa Traders?

Accepted Answer

Debit insurance and credit bank.

Answer

Debit bank and credit trade receivables.

Answer

Debit trade payables and credit bank.

Answer

Debit bank and credit insurance.

Answer

Debit trade receivables and credit bank.

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