CIMA Exam CIMAPRA17-BA3-1 Topic 1 Question 86 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam

Question #: 86
Topic #: 1

[All CIMAPRA17-BA3-1 Questions]

Mr UY has just had property P re-valued. Mr UY originally purchased property P for 560,000. It is now worth 780,000.

Which ONE of the following shows how this transaction should be recorded in Mr UY's property account?

A220,000 credit

B220,000 debit

C780,000 debit

D780,000 credit

Show Suggested Answer

Suggested Answer: A

by Tamala at May 02, 2024, 03:53 PM

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Shenika

29 days ago

Option B is the correct answer. The increase in value is recorded as a debit to the property account.

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Kris

4 days ago

Option B is the correct answer. The increase in value is recorded as a debit to the property account.

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Hannah

8 days ago

B) 220,000 debit

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Ariel

14 days ago

A) 220,000 credit

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Johnetta

1 months ago

Haha, I bet Mr. UY is feeling pretty good about that 220,000 gain! Time to splurge on a new sports car, am I right?

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Latosha

23 hours ago

B) 220,000 debit

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Brittni

13 days ago

A) 220,000 credit

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Mayra

1 months ago

I'm not sure about this one. Shouldn't it be a credit since the property value has increased?

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Kattie

8 days ago

D) 780,000 credit

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Jacqueline

10 days ago

Yes, you are correct. The increase in property value should be recorded as a credit.

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Alberta

15 days ago

A) 220,000 credit

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Tammy

2 months ago

Option B looks right to me. We're increasing the value of the property, so it's a debit to the account.

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Amalia

8 days ago

Option B looks right to me. We're increasing the value of the property, so it's a debit to the account.

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Chery

23 days ago

B) 220,000 debit

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Jettie

1 months ago

A) 220,000 credit

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Jutta

2 months ago

But wouldn't the increase in property value be recorded as a credit in the account?

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Jamal

2 months ago

I disagree, I believe the correct answer is D) 780,000 credit.

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Jutta

3 months ago

I think the answer is B) 220,000 debit.

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