JAMB Principles of Accounts 2023 Question 34

Question 34

Double Entry and the Ledger

Use 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:

  1. A.Jide ₦12,000 and credit sales account ₦12,000
  2. B.sugar account ₦12,000 and credit Jide ₦12,000
  3. C.Ibrahim ₦12,000 and credit Jide ₦12,000
  4. 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.