The accounting entries used to record a cheque issued by a business is to?

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.