Waec Model Questions Vol1 2020 Financial Accounting Question 2

Practice objective / multiple choice question 2 from the 2020 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2020 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 2 WAEC_MODEL_QUESTIONS_VOL1 • 2020 • FINANCIAL_ACCOUNTING • objective

On 1 March, XYZ Traders purchased goods costing ₦120,000 on credit, terms 2/10, n/30. The amount was paid in cash on 8 March, taking the discount. Record the journal entries for the purchase and for the payment.

Answer Options

Correct Answer A. Purchase: Dr Purchases ₦120,000; Cr Accounts Payable ₦120,000. Payment: Dr Accounts Payable ₦120,000; Cr Cash ₦117,600; Cr Purchase Discounts Earned ₦2,400.
B. Purchase: Dr Purchases ₦120,000; Cr Accounts Payable ₦120,000. Payment: Dr Accounts Payable ₦120,000; Cr Cash ₦120,000.
C. Purchase: Dr Purchases ₦120,000; Cr Accounts Payable ₦120,000. Payment: Dr Accounts Payable ₦120,000; Cr Cash ₦120,000; Cr Purchase Discounts Earned ₦2,400.
D. Purchase: Dr Purchases ₦120,000; Cr Accounts Payable ₦120,000. Payment: Dr Accounts Payable ₦120,000; Cr Cash ₦114,000; Cr Purchase Discounts Earned ₦6,000.
Correct Answer
A
Correct Option:
Purchase: Dr Purchases ₦120,000; Cr Accounts Payable ₦120,000. Payment: Dr Accounts Payable ₦120,000; Cr Cash ₦117,600; Cr Purchase Discounts Earned ₦2,400.

About This Question

This is Waec Model Questions Vol1 2020 Financial Accounting Question 2. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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