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JAMB Principles of Accounts 2012 Question 4

Question 4

Double Entry and the Ledger

The correct posting in the double entry system of account when there is an increase in assets, expenses, capital or liabilities is to debit

  1. A.capital and credit liabilities
  2. B.liabilities and credit assets
  3. C.assets and credit capital
  4. D.capital and credit assets.
Show the answer and explanation

Answer: C (assets and credit capital)

Explanation

Increases in assets (and expenses) are debited; increases in capital (and liabilities) are credited.