Ask Question
2 September, 08:03

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

+1
Answers (1)
  1. 2 September, 09:50
    0
    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
Know the Answer?
Not Sure About the Answer?
Find an answer to your 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. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers