JAMB Accounting 2022 Objective — Question 5

Question 5 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2022 Objective paper, with the correct answer and a full explanation.

5. The accounting entry for cash purchase of assets is

A. (A) Dr: Asset account and Cr: Cash accountCorrect
B. (B) Dr: Purchases account and Cr: Cash account
C. (C) Dr: Cash account and Cr: Purchases account
D. (D) Dr: Cash account and Cr: Asset account

Explanation

For a cash purchase of an asset, the asset account is receiving value while cash is giving value, so it is debited to the asset account and credited to the cash account.

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