- 1 Marks
Question
Success Motors bought three Toyota Jeeps on cash at the cost of N16,000,000. On debiting the vehicle account, the corresponding credit for the purchase will appear in the:
A. Sales day book
B. Purchase day book
C. Payable account
D. Cash book
E. Purchases account
Answer
D
Explanation:
Since the vehicles were bought on cash, the corresponding credit entry would be made in the cash book to record the outflow of cash.
- Topic: Accounting Concepts
- Series: NOV 2022
- Uploader: Theophilus