Question

The telephone account of R550 was paid

Liabilities :
Effect-
Reason-

Answer 1

[AI-generated answer — Bot GPT 3.5]

Effect: The telephone account liability of R550 has been reduced to zero.

Reason: The payment of R550 for the telephone account has been made, therefore reducing the liability of the company. This payment ensures that the company does not owe any outstanding amount for the telephone services.