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WAEC Financial Accounting 1992 Question 19

Question 19

Books of Original Entry

Ajijola Enterprises bought 40 pairs of shoes at ₦45 each from Kabi Shoe Factory on credit. This transaction will first be recorded by Ajijola in the

  1. A.ledger
  2. B.principal journal
  3. C.cash book
  4. D.Purchases day book
  5. E.Sales day book.
Show the answer and explanation

Answer: D (Purchases day book)

Explanation

Goods for resale bought on credit go first into the purchases day book.