JAMB Accounting 2009 Objective — Question 4

Question 4 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2009 Objective paper, with the correct answer and a full explanation.

4. Musa, a prepaid customer of XYZ and KLM, bought #1500 recharge card from XYZ and #2,000 recharge card from KLM for business calls. The entry to record these transactions is

A. debit telephone #3500, credit XYZ and KLM #3500
B. debit telephone #3500, credit cash #3500Correct
C. debit sundries, credit XYZ and KLM #3500
D. debit sundries #3500, credit telephone #3500

Explanation

Since Musa is a prepaid customer, he pays in advance: Dr Telephone #3,500; Cr Cash #3,500.

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