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WAEC Financial Accounting 2001 Question 16

Question 16

Double Entry and the Ledger

Which of the following is not correct?

  1. A.Increases in asset accounts are entered on the debit side
  2. B.Decreases in assets accounts are entered on the credit side
  3. C.Increases in liability accounts are entered on the credit side
  4. D.Decreases in liability accounts are entered on the credit side.
Show the answer and explanation

Answer: D (Decreases in liability accounts are entered on the credit side.)

Explanation

A decrease in a liability is a debit entry, so statement D is wrong.