JAMB Commerce 1999 Question 12

Question 12

Purchase and Sale of Goods

Use the document below to answer questions 12 and 13.
₦200,000.00 Liverpool, U.K, June 2, 1995.
Three months after date, pay to or to the order of Mr. Okon Etim Esin
Two hundred thousand ..................... Naira
Payable at First Bank Plc,
Lagos
No. 5 Due Sept. 2, 1995
Imo Edit Enoh
Liverpool.
Okon Etim Esin is the

  1. A.debtor
  2. B.creditor
  3. C.exporter
  4. D.importer.
Show the answer and explanation

Answer: B (creditor)

Explanation

Okon Etim Esin is the payee who will receive the ₦200,000, so he is the creditor.