43
Ibrahim, a micro business operator, sold 10 bags of sugar to Jide at a total cost of #12,000.
In the book of Ibrahim, the entry to record the transaction would be to debit
- A. sugar account #12,000 and credit Jide #12,000
- B. Jide #12,000 and credit sales account #12,000
- C. Ibrahim #12,000 and credit Jide #12,000
- D. sugar account #12,000 and credit Ibrahim #12,000
44
Akirika bought a motor van for his business by cash. The entries are to debit
- A. motor van and credit Akirika
- B. sales and credit Akrika
- C. motor van and credit cash
- D. cash and credit motor van
45
The capital of a sole trader can be increased by
- A. debiting the capital account
- B. crediting the capital account
- C. debiting the cash account
- D. crediting the cash account
46
The correct posting in a double entry system of account when there is an increase in double assets, expenses, capital or liabilities is to debit
- A. capital and debit liabilities
- B. liabilities and credit assets
- C. assets and credit capital
- D. capital and credit assets
47
An accountant must not only be interested in record keeping but also in
- A. the application of professional competency
- B. the accuracy of postings
- C. the casting of financial figures
- D. effective preparation of balance sheet
48
The basis upon which assets of an organization is valued is the
- A. historical concept
- B. business entity concept
- C. periodicity concept
- D. materiality concept