Ibrahim, a micro business operator, sold 10 bags of sugar to Jide at a total cost of #12,000.
In the book of Ibrahim, the entry to record the transaction would be to debit
-
A.
sugar account #12,000 and credit Jide #12,000 -
B.
Jide #12,000 and credit sales account #12,000 -
C.
Ibrahim #12,000 and credit Jide #12,000 -
D.
sugar account #12,000 and credit Ibrahim #12,000
Correct Answer: Option B
Explanation
Debit cash paid by Jide to the sum of 12,000 and credit stock or sales account