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WAEC Accounting 2016 Objective — Question 4

Question 4 of 50 from the West African Examinations Council (WAEC) Accounting 2016 Objective paper, with the correct answer and a full explanation.

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4. Nwoye buys stock and pays by cheque. The entries in the books of Nwoye is debit A. Purchase; Credit cheque B. Purchase; Credit bank C. Bank; Credit Purchase D. Cheque; Credit Purchases

  • A. Purchase; Credit cheque
  • B. Purchase; Credit bankCorrect
  • C. Bank; Credit Purchase
  • D. Cheque; Credit Purchases

Explanation

The transaction is treated thus: Dr Purchases A/c; Cr Bank A/c.

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