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WAEC Accounting 2012 Objective — Question 15

Question 15 of 50 from the West African Examinations Council (WAEC) Accounting 2012 Objective paper, with the correct answer and a full explanation.

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Osa started business with Le40,000 cash. The account entries is: debit

  • A. Cash Account, credit Capital AccountCorrect
  • B. Capital Account, credit Cash Account
  • C. Purchases Account, credit Cash Account
  • D. Expenses Account, credit Capital Account

Explanation

For a new business, the accounting entry is Dr: Cash/Bank account, Cr: Capital account.

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