JAMB Accounts Principles of Accounts 2012 Paper

Concept:A credit sale is recorded by debiting the customer’s personal account and crediting the sales account. This follows the double-entry rule: debit the receiver, credit the income.Explanation:Ibrahim sold sugar to Jide, so Jide now owes Ibrahim for the goods. In Ibrahim’s books, Jide becomes a debtor, and his personal account must be debited with the selling amount of $\#12{,}000$.The sale is income to Ibrahim, so the sales account must be credited with $\#12{,}000$.The correct journal entry is therefore: debit Jide account $\#12{,}000$ and credit sales account $\#12{,}000$.The sugar/stock account is not debited at the point of recording the sale; it is only affected when the cost of goods sold is later recorded.Answer:B. Jide $\#12{,}000$ and credit sales account $\#12{,}000$.