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WAEC Financial Accounting 2015 Question 25

Question 25

Books of Original Entry

The total of the returns outwards journal is posted to the

  1. A.credit side of the returns outwards book.
  2. B.debit side of the returns outwards account.
  3. C.debit side of the purchases returns book.
  4. D.credit side of the returns outwards account.
Show the answer and explanation

Answer: D (credit side of the returns outwards account.)

Explanation

Individual suppliers are debited; the total of the returns outwards journal is credited to the returns outwards account.