Diamond Ringo business was started when Mr. Diamond brought in a cheque of N500,000, which…

Diamond Ringo business was started when Mr. Diamond brought in a cheque of N500,000, which was paid into the bank account. Which of the following entries properly records the transaction?
  • A.
    Cash account was credited with N500,000 and capital account was debited with N500,000
  • B.
    Bank account was debited with N500,000 and capital account was credited with N500,000
  • C.
    Bank account was accredited with N500,000
  • D.
    Mr. diamond acount was debited with N500,000 and the cheque account was credited with N500,000
Correct Answer: Option B
Explanation
You May Also Like