Waec Model Questions Vol1 2021 Financial Accounting Question 23
Practice objective / multiple choice question 23 from the 2021 Waec Model Questions Vol1 Financial Accounting examination.
During posting, a purchase invoice of ₦45,000 was mistakenly debited to Purchases and credited to Cash instead of Creditors. In a separate transaction, a sales return of ₦12,000 was recorded as a debit to Sales Returns and credit to Cash, whereas it should have been a debit to Cash and credit to Sales Returns. After these errors the trial balance still shows total debits equal to total credits. Identify the effect of each error on the trial balance and calculate how the Cash and Creditors balances should be adjusted to reflect the correct amounts.
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About This Question
This is Waec Model Questions Vol1 2021 Financial Accounting Question 23. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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