Waec Model Questions Vol1 2019 Financial Accounting Question 3

Practice objective / multiple choice question 3 from the 2019 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2019 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 3 WAEC_MODEL_QUESTIONS_VOL1 • 2019 • FINANCIAL_ACCOUNTING • objective

A payment of ₦25,000 was made to Supplier A for goods that had been purchased on credit. The accountant mistakenly recorded the entry as a debit to Cash and a credit to Purchases, and omitted the required credit to Supplier A's account. The trial balance after posting shows a difference of ₦25,000. What journal entry should be passed to correct the error and clear the suspense account?

Answer Options

A. Dr Purchases 50,000; Dr Supplier A 25,000; Cr Cash 75,000
B. Dr Purchases 25,000; Dr Supplier A 25,000; Cr Cash 25,000
Correct Answer C. Dr Purchases 25,000; Dr Supplier A 25,000; Cr Cash 50,000
D. Dr Purchases 25,000; Cr Supplier A 25,000; Cr Cash 25,000
Correct Answer
C
Correct Option:
Dr Purchases 25,000; Dr Supplier A 25,000; Cr Cash 50,000

About This Question

This is Waec Model Questions Vol1 2019 Financial Accounting Question 3. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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