Grade 11 student Yolanda Fonagy sat in Mr. Voytek's accounting class,
frustrated and confused. She...

Question

Grade 11 student Yolanda Fonagy sat in Mr. Voytek's accounting class, 
frustrated and confused. She felt certain that she knew the basic's of 
debiting and crediting accounts. Furthermore, her textbook clearly 
showed that asset accounts, such as Bank, are increased by debiting. 
However, when she made her last bank deposit, she discovered that the 
teller had increased her bank balance by crediting her savings account! 
She was certain that either the textbook, her teacher or her bank teller
 had made a serious error.1. Was Yolanda correct in assuming that an error had been made? Defend your position.2. Check the passbook you have received from your bank. Has the bank also increased your bank balance by crediting your account?3. Write a short paragraph explaining to Yolanda why her account was increased by a credit entry.

David · Accepted Answer

Grade 11 student Yolanda Fonagy sat in Mr. Voytek's accounting class, 
frustrated and confused. She felt certain that she knew the basic's of debiting and 
crediting accounts. Furthermore, her textbook clearly showed that asset 
accounts, such as Bank, are increased by debiting. However, when she made 
her last bank deposit, she discovered that the teller had increased her bank 
balance by crediting her savings account! She was certain that either the 
textbook, her teacher or her bank teller had made a serious error. 
 
 
1. Was Yolanda correct in assuming that an error had been made? Defend your 
position. 
 
Yolanda was incorrect in assuming that an error has been made. There is no 
error made by the bank in showing the deposit in the credit of customer account. 
 
When we deposit the cash in Bank, Cash is decreased from our cash box.

Grade 11 student Yolanda Fonagy sat in Mr. Voytek's accounting class, frustrated and confused. She felt certain that she knew the basic's of debiting and crediting accounts. Furthermore, her textbook...

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