Multiple choice

The concerned account debited in the main journal should be

  1. debited in the ledger but reference should be of the respective credit account

  2. Credited in the ledger but reference should be of the respective debit account

  3. credited in the ledger and reference should be of the respective credit account

  4. debited in the ledger but reference should also be of the respective debit account
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A Correct answer
Explanation

When an account is debited in the journal, it must be debited in the ledger as well. However, the cross-reference (posting reference) should indicate the account that was credited in the transaction, not the debit account. This maintains the dual-entry system's audit trail.

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