Double Entry Bookkeeping Records Transactions in Two Accounts

Steps:

• Define double entry: Every transaction affects at least two accounts, with equal debits and credits.
• Examine options for dual account impact: Debit one account, credit another.
• Identify recording in primary books (journals) and ledgers showing balanced entries.
• Select option demonstrating credit purchase as debit to purchases account and credit to payables.

Why C is correct:

• Double entry requires recording credit purchases as a debit to the purchases account (increasing expense/asset) and a credit to accounts payable, which C explicitly shows in the purchases journal and purchases account.

Why the others are wrong:

• A: Sales journal and ledger track sales but focus on subsidiary records, not the core debit-credit balance.
• B: Cash book and purchases ledger update cash and payables separately, not a single transaction's dual entry.
• D: Error correction is an adjusting entry, not an example of standard double entry for a transaction.

Final answer: C