Answer:
The correct answer is (d) 1900.
Explanation:
here's a step-by-step explanation of how to arrive at the correct answer:
Step 1: Identify the total expenses for the month of November
From the given ledger, we can see that there are two entries for expenses in the month of November: $1,000 on November 5 and $900 on November 15. To find the total expenses for the month, we add these two amounts: $1,000 + $900 = $1,900.
Step 2: Determine the balance of the expenses account
In the ledger, both entries for expenses are listed as debits. Since debits increase the balance of expense accounts, the balance of the expenses account is the total of the debits, which is $1,900.
Step 3: Create the closing entry
The purpose of the closing entry is to transfer the balance of the expenses account to the income summary account. Since the expenses account has a debit balance of $1,900, we need to credit the expenses account for this amount and debit the income summary account for the same amount. This will reduce the balance of the expenses account to zero and transfer the total expenses for the month to the income summary account. The closing entry is:
Expenses 1,900 (credit)
Income Summary 1,900 (debit)
Step 4: Check the options to find the correct answer
From the given options, we can see that option (d) 1900 is the correct answer, as it matches the amount of the closing entry we calculated in Step 3.
Therefore, the correct answer is (d) 1900.