O-LevelAccountingAccounting procedures7707/12 · Oct/Nov 2018 · Q151 Mark

Raj is both a customer of and a supplier to Balbir. Raj's account in Balbir's sales ledger showed a debit balance of $300. There was a credit balance of $100 on Raj's account in the purchases ledger. A contra entry between the two accounts was agreed. Which entry would Balbir make in Raj's account in the purchases ledger?

Acredit $100

Bcredit $200

Cdebit $100

Ddebit $200

✓ Correct answer

C: debit $100

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2018 Paper 1 Variant 2, question 15.

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