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WAEC Financial Accounting 2007 Question 8

Question 8

Double Entry and the Ledger

A debit entry in the Cash Account and a corresponding credit entry in Alieu's Account indicate a

  1. A.receipt of cash from Alieu
  2. B.payment of cash to Alieu
  3. C.sale of goods to Alieu for cash
  4. D.purchase of goods from Alieu for cash.
Show the answer and explanation

Answer: A (receipt of cash from Alieu)

Explanation

Cash increases (debit) and Alieu gave the value (credit): cash received from him.