Question

1.

When a Liability is decreased or reduced, it is registered on the?

a. Debit side or left side of the account

b. Credit side or right side of the account c. Debit side or right side of the account

d. Credit side or left side of the account

A is the correct answer
​

Answer 1

Answer:

If liability decreased than it will be registered on the debit side of the account.

Explanation:

Rule of Debit and Credit says :- Debit the decreases and Credit the increases in Liability Account.

Answer 2

When Liability is decreased or reduced, it is registered on the Debit side or left side of the account.

• a. Debit side or left side of the account.
• The Debit side of a Liability account is used to record a decrease or reduction in the Liability balance.
• This could be a result of payment, refund, or another form of reduction.
• The Debit side shows the decrease in Liability, while the Credit side will show the corresponding increase in financial resources, such as cash or an asset.
• The liability is an obligation or debt owed. When a liability is decreased or reduced, the amount of this obligation or debt owed is lessened.
• This is recorded by entering the reduced amount on the debit side, or left side, of the liability account, thus decreasing the amount of liability owed.

#SPJ3