Waec Model Questions Vol1 2020 Financial Accounting Question 24
Practice objective / multiple choice question 24 from the 2020 Waec Model Questions Vol1 Financial Accounting examination.
A company's Bank account has an opening debit balance of ₦100,000. The following transactions were posted during the month: 1. Received cash from a customer: Dr Bank ₦25,000; Cr Accounts Receivable ₦25,000. 2. Paid rent: Dr Rent Expense ₦12,000; Cr Bank ₦12,000. 3. Purchased equipment on credit, but the entry was mistakenly posted as Dr Equipment ₦40,000; Cr Bank ₦40,000. The error was later corrected by reversing the entry (Dr Bank ₦40,000; Cr Equipment ₦40,000) and posting the correct entry (Dr Equipment ₦40,000; Cr Accounts Payable ₦40,000). 4. Received loan proceeds: Dr Bank ₦60,000; Cr Loan Payable ₦60,000. After all postings, what is the closing balance of the Bank account (state the amount and whether it is a debit or credit balance)?
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About This Question
This is Waec Model Questions Vol1 2020 Financial Accounting Question 24. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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