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GCE Financial Accounting 1989 Question 3

Question 3

Double Entry and the Ledger

When goods are sold for cash the credit entry goes to the

  1. A.trader's account
  2. B.cash book
  3. C.purchases account
  4. D.sales account
  5. E.customer's account.
Show the answer and explanation

Answer: D (sales account)

Explanation

Cash sale: debit cash book (cash comes in), credit sales account.