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JAMB Principles of Accounts 2008 Question 6

Question 6

Double Entry and the Ledger

Bariga, a stock broker bought stationery for N12000 by cash. To record this transaction, debit

  1. A.cash and credit stationery
  2. B.purchases and credit stationery
  3. C.stationery and credit cash
  4. D.stationery and credit purchases.
Show the answer and explanation

Answer: C (stationery and credit cash)

Explanation

Stationery (an expense) increases, so debit stationery; cash goes out, so credit cash.