Accounting JAMB

The purchase of mattresses from Freehold enterprises by cheque amounted to #305150. The correct entries for this transaction in the book of the buyer is to debit?

A. sales account and credit bank account
B. purchases and credit bank account
C. cash and credit freehold
D. bank and credit freehold

Correct Answer:

Option B – purchases and credit bank account

Explanation

In the book of the buyer, we debit stock or purchase account and credit bank

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