A book-keeper makes the following adjustments to ledger accounts before making transfers to the statement of profit or loss for the period.
1- The insurance expense account is debited for a prepaid amount.
2- The account for rent received is debited for an amount received in advance.
3- The allowance for irrecoverable debts account is debited for the reduction in the allowance.
4- The provision for depreciation on machinery account is debited for the annual depreciation charge.
Which entries are correct?
1 )
1, 2 and 3
2 )
1, 3 and 4
2 and 3 only
4 )
2 and 4
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