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JAMB Principles of Accounts 2012 Question 8

Question 8

Double Entry and the Ledger

Ibrahim, a microbusiness operator, sold 10 bags of sugar to Jide at total cost of ₦12,000.
The record in Jide's book would be to debit

  1. A.purchases ₦12,000 and credit Ibrahim ₦12,000
  2. B.purchases ₦12,000 and credit sugar account ₦12,000
  3. C.Jide ₦12,000 and credit purchases ₦12,000
  4. D.Ibrahim ₦12,000 and sugar account ₦12,000.
Show the answer and explanation

Answer: A (purchases ₦12,000 and credit Ibrahim ₦12,000)

Explanation

Jide has bought goods on credit: debit purchases and credit Ibrahim, his creditor.