Question

A journal in the books of accounts of a company showed that stationery worth $1,500 was purchased by the company in an accounting period. Jamie has to post this journal entry into the ledger account. How will he make this posting?
A. debit the cash account and credit the stationery account
B. debit the stationery account and credit the cash account
C. debit the stationery account and credit the company’s account
D. debit the company’s account and credit the cash account

Answer 1

Answer:

B. debit the stationery account and credit the cash account

Explanation:

Every transaction in business has both credit and debit entries in the general journal. Increase in assets, both current and fixed assets, is always debited while decrease in assets is always credited. Both stationery and cash are company’s fixed and current assets respectively. In this case, there is increase in company’s stationery so we debit stationery account. On the other hand, there is decrease in the company’s cash so we credit the cash account. The correct answer is B  

Answer 2

Answer:

It is B.

Explanation: