Concept:In Jide's books, buying goods on credit means the purchases account is debited and the supplier's personal account is credited.
Explanation:Jide is the buyer receiving 10 bags of sugar from Ibrahim.
Debit the Purchases account with
#12,000 because goods bought are an expense.
Ibrahim is the supplier, and since payment has not been made, Jide owes Ibrahim
#12,000.
Therefore, credit Ibrahim's account with
#12,000.
This follows the double-entry rule: debit what comes in, credit the giver.
The record is not affected by cash unless payment was stated, so credit goes to Ibrahim, not cash.
Answer:Debit Purchases
#12,000 and credit Ibrahim
#12,000, which is option A.