WAEC Financial Accounting 2015 Question 4

Question 4

Books of Original Entry

Purchase invoice is first entered in the

  1. A.Purchases Account.
  2. B.Cash Book.
  3. C.Sales Journal.
  4. D.Purchases Journal.
Show the answer and explanation

Answer: D (Purchases Journal.)

Explanation

Invoices for credit purchases are first recorded in the purchases journal (day book) before posting to the ledger.