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Paper 2 · November 2015 · Books of Original Entry

In S. Saka's sales ledger, T. Tasara's account was credited with $1 050 for 'Bad debts' on 28 December 2012, writing off the remaining balance owed. In which subsidiary book (book of original entry) would this write-off first have been recorded?

ASales returns and allowances journal
BGeneral journal
CCash book
DSales journal

Explanation

Bad debts written off are recorded via a journal entry (debit Bad Debts, credit the debtor's account), first entered in the General Journal.

Derived from ZIMSEC Principles of Accounts 7112/2 Paper 2, November 2015, Q2

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