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WAEC Financial Accounting 1996 Question 6

Question 6

Double Entry and the Ledger

Mr. B sold goods worth N200 on credit to Mr. C.
Mr. B should debit this to

  1. A.Profit and Loss Account
  2. B.Manufacturing Account
  3. C.Sales Account
  4. D.Mr. C's Account
  5. E.Mr. B's Account
Show the answer and explanation

Answer: D (Mr. C's Account)

Explanation

On a credit sale the seller debits the customer's (debtor's) account, here Mr. C, and credits sales.