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WAEC Financial Accounting 2020 Question 7

Question 7

Books of Original Entry

An office equipment bought for use was found to be defective and returned to the supplier. The subsidiary book to record this transaction is

  1. A.returns outwards journal.
  2. B.returns inwards journal.
  3. C.purchases journal.
  4. D.general journal.
Show the answer and explanation

Answer: D (general journal.)

Explanation

Returns outwards journal is only for goods bought for resale; returning a fixed asset goes in the general journal.