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recognising a sale on credit. taking account of any foreseeable losses. Which is an example of the application of the principle of prudence? 0. Player 2 . Money paid to suppliers is recorded in the creditor's account and the bank account.


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Bank Reconciliation Statement

A debit balance as per cash book shows the amount of the money in the bank, whereas, a credit balance means that the business has taken an overdraft.


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