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WAEC Financial Accounting 2008 Question 41

Question 41

Double Entry and the Ledger

The entries to record goods bought for cash are: debit

  1. A.Cash Account; Credit Purchases Account
  2. B.Purchases Account; Credit Cash Account
  3. C.Purchases Account; Credit Stock Account
  4. D.Purchases Account; Credit Goods Account.
Show the answer and explanation

Answer: B (Purchases Account; Credit Cash Account)

Explanation

Debit purchases, credit cash.