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WAEC Accounting 2020 Objective — Question 7

Question 7 of 50 from the West African Examinations Council (WAEC) Accounting 2020 Objective paper, with the correct answer and a full explanation.

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An office equipment bought for use was found to be defective and returned to the supplier. The subsidiary book to record this transaction is

  • A. returns outwards journal
  • B. returns inwards journal
  • C. purchases journal
  • D. general journalCorrect

Explanation

Transactions involving fixed assets (not ordinary trade goods) are recorded in the general journal, hence returning a defective office equipment is recorded in the general journal.

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