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JAMB Principles of Accounts 1995 Question 11

Question 11

Books of Original Entry

Bola, UTC's regular customer, owed ₦1 000 on account of a radio bought. If he sent in a cheque for ₦1 500, UTC would send him a

  1. A.credit note
  2. B.debit note
  3. C.journal voucher
  4. D.way bill.
Show the answer and explanation

Answer: A (credit note)

Explanation

Bola has overpaid by ₦500, so UTC owes him; it credits his account and informs him with a credit note.