A debit entry in the cash account and a corresponding credit in Alieu's account indicate a

Assessment: WAEC SSCE - Financial Accounting - 2007 (Objective) Subject: Financial Accounting

Question 1 Report

A debit entry in the cash account and a corresponding credit in Alieu's account indicate a

receipt of cash from alieu

payment of cash to Alieu

sale of goods to Alieu for cash

purchases of goods from alieu for cash

Answer Details

A debit entry in the cash account and a corresponding credit in Alieu's account indicate a receipt of cash from Alieu. This means that Alieu has paid cash to the business, and the business has recorded the transaction by debiting the cash account (an asset account) and crediting Alieu's account (a personal account). The debit in the cash account represents an increase in cash, while the credit in Alieu's account represents a decrease in his account balance since he has paid cash to the business.

Read lesson note on Cashbook (JAMB)

Read lesson note on Nature And Significance Of Accounting (JAMB)

Nature And Significance Of Accounting

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