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JAMB Principles of Accounts 2004 Question 35

Question 35

Departmental Accounts

How are credit sales by a department treated?

  1. A.the same way as normal debtors' transactions
  2. B.in a different way from normal debtors' transactions
  3. C.as an addition to the sales manager's account
  4. D.as an addition to the production manager's account
Show the answer and explanation

Answer: A (the same way as normal debtors' transactions)

Explanation

A department's credit sales are recorded like any other credit sale: debit the debtor, credit that department's sales.