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WAEC Financial Accounting 2013 Question 13

Question 13

Double Entry and the Ledger

The double entry principle states that

  1. A.every debit entry must have a corresponding credit entry.
  2. B.every credit entry must have a corresponding double entry.
  3. C.every debit entry must have a corresponding double entry.
  4. D.every asset must have a corresponding liability.
Show the answer and explanation

Answer: A (every debit entry must have a corresponding credit entry.)

Explanation

Every transaction has two sides: for each debit there must be an equal credit.