Ibrahim; a micro-business operator; sold 10 bags of sugar to Jide at a total cost of #12000. The record in Jide’s book would be to debit?

A. purchases #12,000 and credit Ibrahim #12,000
B. purchases #12,000 and credit sugar account #12,000
C. Jide #12,000 and credit purchases
D. Ibrahim #12,000 and sugar account #12,000

Correct Answer:

Option A – purchases #12,000 and credit Ibrahim #12,000

Explanation

Debit purchase account with 12,000 and credit cash paid to ibrahim 12,000