JAMB Principles of Accounts 2014 Question 5

Question 5

Cash Book

Aduke Motors bought three Toyota Hilux vans on cash at the cost of ₦6,000,000, on debiting the vehicle account, the corresponding credit for the purchase will appear in the

  1. A.sales day book.
  2. B.purchases day book.
  3. C.sales subsidiary book.
  4. D.cash book.
Show the answer and explanation

Answer: D (cash book.)

Explanation

Paying cash reduces cash, so the credit entry is in the cash book.