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WAEC Financial Accounting 2000 Question 13

Question 13

Double Entry and the Ledger

When goods are purchased on account, the accounting entries are

  1. A.debit Purchases Account, credit Supplier's Account
  2. B.credit Purchases Account, debit Supplier's Account
  3. C.credit Bank Account, debit Purchases Account
  4. D.debit Bank Account, credit Purchases Account.
Show the answer and explanation

Answer: A (debit Purchases Account, credit Supplier's Account)

Explanation

Credit purchases: debit purchases and credit the supplier, who is now owed money.