- 1 Marks
Question
The double entry rule is expressed as
A. Debit the receiver, credit the giver
B. Debit the giver, credit the receiver
C. Debit the receiver, credit the Bank/Cash account
D. Debit the Bank/Cash account, credit the giver
E. Debit amount paid, credit amount received
Answer
A
Explanation:
The correct answer is A because the double-entry system requires that for every debit entry, there is a corresponding credit entry. When recording transactions, you debit the receiver (the account receiving the benefit) and credit the giver (the account providing the benefit). This principle helps maintain the balance in the accounting equation and ensures accurate financial records.
- Tags: Accounting Fundamentals, Basic Accounting Principles, Double Entry
- Level: Level 1
- Topic: Double-Entry Accounting Principles
- Series: MAY 2014
- Uploader: Theophilus