- 1 Marks
Question
Which of the following pair of accounts will have balances on opposite sides?
A. Sales account and capital account
B. Furniture account and cash account
C. Capital account and purchases account
D. Stationery account and salaries account
E. Rent expenses account and trade receivables account
Answer
Answer: C
Explanation: The capital account usually has a credit balance, while purchases have a debit balance. Other options either both have credit balances or both have debit balances, so they are incorrect.
- Tags: Accounting principles, Accounts Balances, Opposite Sides
- Level: Level 1
- Topic: Double-Entry Accounting Principles
- Series: MAY 2017
- Uploader: Kwame Aikins