A. debit cash book and credit drawer
B. credit cash book and debit drawer
C. debit cash book and credit suspense account
D. credit cash book and debit suspense account
Correct Answer:
Option A – debit cash book and credit drawer
Explanation
In posting accounting entries, always bear in mind the basic accounting principle of ”for every debit entry, there must be a corresponding credit entry”. In the above question, a business paid out money to its creditor (someone owed by the business) through a check, this means that, the business cash/bank accounts will be debited (take money from) while the drawer (creditor whom is owed by the business) will be credited.
