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Accounts (Principles of Accounts) · Double entry and the ledger

Accounts (Principles of Accounts)Double entry and the ledgerJAMB

Okon Motors, a motorcycle dealer, bought motorcycles worth ₦900,000 on credit from Dayo Ltd to sell to customers. The correct entry is

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Answer: C. debit purchases account; credit Dayo Ltd

Goods bought for resale go to purchases, not to a non-current asset account; on credit, the supplier is credited.

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