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WAEC Financial Accounting 2004 Question 22

Question 22

Double Entry and the Ledger

Which of the following is not correct?

  1. A.Credit sales are entered on the debit side of the customers personal account
  2. B.Credit purchases are entered on the debit side of the supplier's personal account
  3. C.Returns inwards are entered on the credit side of the customer's personal account
  4. D.Returns outwards are entered on the debit side of the supplier's account.
Show the answer and explanation

Answer: B (Credit purchases are entered on the debit side of the supplier's personal account)

Explanation

Credit purchases are credited to the supplier's account.