7. On 1 November 2015 Theodist Ltd signed a contract with EMTV to run advertisements during January and March 2016 to promote school supplies at an agreed amount of K 12 000. Theodist Ltd paid the agreed amount on the same day.
Which of the following is the correct double entry made by Theodist Ltd on 1 November 2015.
Dr Cr
A Advertising expenses K 12 000 Cash at bank K 12 000
B Advertising expenses K 12 000 Accounts payable – EMTV K 12 000
C Prepaid expenses K 12 000 Cash at bank K 12 000
D Accounts receivable- EMTV K 12 000 Cash at bank K 12 000