JAMB Accounts Principles of Accounts 2012 Paper

Concept:In a modern banking system, a cash transfer is made from one bank account to another, so the transferor must be an account holder.Explanation:A bank cannot carry out a cash transfer for someone who does not have an account with it.The transferor gives an instruction to debit his or her own account and credit another account.Without an account, there is no account to debit, so the transfer is impossible.Having insufficient cash may stop a payment, but the fundamental condition is that the transferor must first have a bank account.Answer:B. has no account with the bank.