20. If the debit side of the trial balance is undervalued by P2,000 with the correct debit balance, which of the following are not the possible reasons? 1. The cash payment for the electricity bill of P2,000 is recorded as the payment for rates in the ledgers. 2. The transaction regarding the settlement of debt by Mr. Lee by cash of P2,000o in the ledger accounts is completely omitted. 3. The receipt of income in cash of P1,000 is recorded in the cash book as a payment by cash of P1,000, while the entry in the income account is made correctly. O (1) and (2) only O (1) and (3) only (2) and (3) only O (1), (2) and (3)

20. If the debit side of the trial balance is undervalued by P2,000 with the correct debit balance, which of the following are not the possible reasons? 1. The cash payment for the electricity bill of P2,000 is recorded as the payment for rates in the ledgers. 2. The transaction regarding the settlement of debt by Mr. Lee by cash of P2,000o in the ledger accounts is completely omitted. 3. The receipt of income in cash of P1,000 is recorded in the cash book as a payment by cash of P1,000, while the entry in the income account is made correctly. O (1) and (2) only O (1) and (3) only (2) and (3) only O (1), (2) and (3)

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter6: Losses And Loss Limitations

Section: Chapter Questions

Problem 1BD

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