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JAMB Principles of Accounts 1998 Question 14

Question 14

Books of Original Entry

Mayana Corporation uses special journals to record its transactions. If one of Mayana's customers returns merchandize purchased with cash (for a refund), it makes an entry in the

  1. A.cash receipts journal
  2. B.sales journal
  3. C.general journal
  4. D.cash disbursement journal.
Show the answer and explanation

Answer: D (cash disbursement journal.)

Explanation

A cash refund is money paid out, so it goes in the cash disbursements (payments) journal.