What is a ledger entry for the sale of plant and machinery on credit to Wilson?

  • A Credit sales account and debit cash account
  • B Credit plant and machinery account and debit Wilson's account
  • C Credit sales account and debit Wilson's Account
  • D Credit plant and machinery account and debit cash account

The correct answer is C. Credit sales account and debit Wilson's Account

The sales and receipts classes of transactions are the typical journal entries, that debit accounts receivable (debtors) and credit sales revenue, and debit cash and credit accounts receivable  in which the amount owed will be paid at a later date.

Previous question Next question