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JAMB Principles of Accounts 2014 Question 9

Question 9

Cash Book

The accounting entries to record a cheque issued by a business is to

  1. A.debit cash book and credit drawer.
  2. B.credit cash book and debit drawer.
  3. C.debit cash book and credit suspense account.
  4. D.credit cash book and debit suspense account.
Show the answer and explanation

Answer: B (credit cash book and debit drawer.)

Explanation

Money paid out by cheque is credited in the (bank column of the) cash book and debited to the account of the person or item paid.