A school brought a set of computers to be used in the teaching of lessons, and paid for them using a cheque. Which of the following double-entries below is the correct way to record this transaction?
Select ONE answer:
- Account to Debit Computer / Account to Credit Bank
- Account to Debit Bank / Account to Credit Computer
- Account to Debit Cash / Account to Credit Computer
- Account to Debit Computer / Account to Credit Cash
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This is multiple choice question is suitable for Accounting KS5 classes.
The answer is 1 – This is the correct double entry record when a school buys the computers and pays for the asset by using a cheque. Answer 2 – would be when the school then sold the computers to a third-party and were paid by a cheque.
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