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WAEC Financial Accounting 2018 Question 27

Question 27

Double Entry and the Ledger

A credit entry is made in the Plant and Machinery Account for the

  1. A.purchase of an additional plant and machinery.
  2. B.sale of plant and machinery.
  3. C.maintenance of plant and machinery.
  4. D.appreciation of the plant and machinery.
Show the answer and explanation

Answer: B (sale of plant and machinery.)

Explanation

A sale removes the asset, so the asset account is credited.