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WAEC Financial Accounting 1991 (August) Question 45

Question 45

Books of Original Entry

A delivery van was bought on credit. The transaction would be entered by the customer first in the

  1. A.Purchases day book
  2. B.Sales day book
  3. C.Returns inwards book.
  4. D.Returns outwards book
  5. E.Journal Proper.
Show the answer and explanation

Answer: E (Journal Proper.)

Explanation

Credit purchases of fixed assets are not goods for resale, so they go in the journal proper.