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WAEC Financial Accounting 2021 Question 19

Question 19

Double Entry and the Ledger

The accounting principle of double entry states that

  1. A.debit the giver and credit the receiver.
  2. B.assets must be equal to capital plus liabilities.
  3. C.every debit entry must have a corresponding credit entry.
  4. D.debit entries increase liabilities while credit entries increase assets.
Show the answer and explanation

Answer: C (every debit entry must have a corresponding credit entry.)

Explanation

Each debit has an equal credit.