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WAEC Financial Accounting 1997 Question 35

Question 35

Double Entry and the Ledger

Which of the following best describes the path of a transaction?

  1. A.Source documents to Journal to Ledger
  2. B.Source documents to Ledger to Journal
  3. C.Journal to Ledger to source documents
  4. D.Journal to source documents to Ledger
  5. E.Ledger to Journal to source documents.
Show the answer and explanation

Answer: A (Source documents to Journal to Ledger)

Explanation

A transaction is shown on a source document, recorded in a book of original entry (journal), then posted to the ledger.