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JAMB Principles of Accounts 2001 Question 7

Question 7

Books of Original Entry

The accuracy of journalizing is checked by

  1. A.ensuring that debit totals equal credit totals
  2. B.posting all journal entries to ledger accounts
  3. C.adding all figures in the debit column
  4. D.comparing accounts in the ledger against the journals.
Show the answer and explanation

Answer: A (ensuring that debit totals equal credit totals)

Explanation

In double entry each journal entry has a debit and an equal credit. Checking that the debit and credit totals agree shows the journal entries are accurate.