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WAEC Financial Accounting 1991 (August) Question 9

Question 9

Double Entry and the Ledger

The principle of double entry accounting says that

  1. A.for every credit purchase, double the entry
  2. B.for every credit sale, double the entry
  3. C.for every transaction, record two entries
  4. D.every debit entry must have a corresponding credit entry
  5. E.each party to a transaction gives value.
Show the answer and explanation

Answer: D (every debit entry must have a corresponding credit entry)

Explanation

Double entry: every debit has an equal and opposite credit.