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WAEC Financial Accounting 2015 Question 8

Question 8

Double Entry and the Ledger

The accounting ledger for goods sold on credit are debit

  1. A.Debtors Account, credit Sales Account.
  2. B.Creditors Account, credit Sales Account.
  3. C.Sales Account, credit Debtors Account.
  4. D.Sales Account, credit Creditors Account.
Show the answer and explanation

Answer: A (Debtors Account, credit Sales Account.)

Explanation

A credit sale makes the customer a debtor (debit) and increases sales (credit).