JAMB Accounts Principles of Accounts 2013 Paper

Concept:A credit purchase paid by cheque is recorded in the buyer’s books by increasing purchases and reducing the bank balance.Explanation:Mattresses are goods bought for resale, so the purchases account increases.Increases in purchases are recorded on the debit side.The payment was made by cheque, so the bank account decreases.A decrease in bank is recorded on the credit side.Therefore, the buyer should debit the purchases account and credit the bank account.Answer:Option B: purchases and credit bank account.