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GCE Financial Accounting 1990 Question 29

Question 29

Double Entry and the Ledger

Which of these entries is wrong?
Purchases Account
Debit: A. Balance b/f ₦130; B. Furniture ₦300; C. Cash ₦200; D. T. Ramoni ₦400; Total ₦1,030
Credit: E. Balance c/d ₦1,030; Total ₦1,030

  1. A.Balance b/f
  2. B.Furniture
  3. C.Cash
  4. D.T. Ramoni
  5. E.Balance c/d
Show the answer and explanation

Answer: B (Furniture)

Explanation

Furniture is a fixed asset and belongs in the furniture account, not the purchases account.