A. Tosanwumi International, credit purchase Account
B. Purchase Account ₦150,000, credit Tosanwumi International Account ₦150,000
C. Credit Account ₦150,000, Credit Tosanwumi International ₦150,000
D. Tosanwumi International ₦150,000, credit credit Account ₦150,000
Correct Answer: Option B
B. Purchase Account ₦150,000, credit Tosanwumi International Account ₦150,000
Explanation
When a purchase was made, a credit purchase invoice would have been issued by the supplier, Tosanwumi International, which would be signed by Mr. Roi as evidence of his acceptance of liability to pay for the goods.
The two accounts needed to record this transaction are purchase Account and Tosanwumi International Account. purchase account would be debited while the Tosanwumi International Account credited.
