Question 34
Double Entry and the LedgerUse the information below to answer questions 34 and 35.
Ibrahim, a micro business operator, sold 10 bags of sugar to Jide at a total cost of ₦12,000.
In the book of Ibrahim, the entry to record the transaction would be to debit:
- A.Jide ₦12,000 and credit sales account ₦12,000
- B.sugar account ₦12,000 and credit Jide ₦12,000
- C.Ibrahim ₦12,000 and credit Jide ₦12,000
- D.Sugar account ₦12,000 and credit Ibrahim ₦12,000
Show the answer and explanation
Answer: A (Jide ₦12,000 and credit sales account ₦12,000)
Explanation
Ibrahim sold on credit: Jide becomes his debtor (debit Jide) and sales account is credited.