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JAMB Principles of Accounts 2008 Question 4

Question 4

Double Entry and the Ledger

One basic assumption of the double entry theory is that it allows

  1. A.two credit entries at the same time
  2. B.two debit entries at the same time
  3. C.debit and credit entries in the same account
  4. D.debit and credit entries in corresponding accounts.
Show the answer and explanation

Answer: D (debit and credit entries in corresponding accounts.)

Explanation

Every transaction has a debit in one account and a matching credit in another account.