Ibrahim, a micro business operator, sold 10 bags of sugar to Jide at a total cost of #12,000. The record in Jide's book would be to debit

Assessment: JAMB UTME - Principles of Accounts - 2012 Subject: Financial Accounting

Question 1 Report

Ibrahim, a micro business operator, sold 10 bags of sugar to Jide at a total cost of #12,000.

The record in Jide's book would be to debit

Answer Details
The record in Jide's book would be to "purchases #12,000 and credit Ibrahim #12,000." This is because Jide purchased 10 bags of sugar from Ibrahim, which means Jide incurred a cost of #12,000 for the goods purchased. Therefore, Jide needs to record this transaction as a purchase of goods, which is an expense. To record the expense, Jide needs to debit the "Purchases" account, which represents the cost of the goods purchased. At the same time, Jide needs to credit Ibrahim's account for the same amount, which represents the payment made to the supplier. In summary, Jide's book should show a debit of #12,000 to Purchases and a credit of #12,000 to Ibrahim.

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