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WAEC Financial Accounting 2017 Question 12

Question 12

Double Entry and the Ledger

The accounts of Jute Enterprise in the books of a supplier, will be a

  1. A.nominal account in the general ledger.
  2. B.personal account in the sales ledger.
  3. C.personal account in the purchases ledger.
  4. D.real account in the general ledger.
Show the answer and explanation

Answer: B (personal account in the sales ledger.)

Explanation

To its supplier, Jute Enterprise is a customer (debtor), so its account is a personal account in the supplier's sales ledger.