Waec Model Questions Vol1 2022 Financial Accounting Question 7

Practice objective / multiple choice question 7 from the 2022 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2022 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 7 WAEC_MODEL_QUESTIONS_VOL1 • 2022 • FINANCIAL_ACCOUNTING • objective

A trial balance of a company lists the following balances (debit unless indicated): Cash ₦45,000, Accounts Receivable ₦30,000, Inventory ₦55,000, Equipment ₦120,000, Accumulated Depreciation - Equipment ₦(30,000) (credit), Accounts Payable ₦(40,000) (credit), Capital ₦(150,000) (credit), Drawings ₦20,000, Sales Revenue ₦(200,000) (credit), Purchases ₦80,000, Salaries Expense ₦25,000. The total of the debit column is ₦350,000 and the credit column is ₦345,000, giving a difference of ₦5,000. Assuming all amounts are correct, the accountant suspects that a single transaction was recorded on the wrong side (debit instead of credit or vice‑versa). Identify the amount of the mis‑recorded transaction and the two accounts that should have been affected.

Answer Options

A. ₦5,000; the expense of ₦5,000 was recorded only as a debit to Salaries Expense, the corresponding credit to Cash was omitted.
Correct Answer B. ₦5,000; the purchase of ₦5,000 was recorded only as a debit to Purchases, the corresponding credit to Accounts Payable was omitted.
C. ₦4,000; the purchase of ₦4,000 was recorded only as a debit to Purchases, the corresponding credit to Accounts Payable was omitted.
D. ₦5,000; the purchase of ₦5,000 was recorded only as a credit to Purchases, the corresponding debit to Cash was omitted.
Correct Answer
B
Correct Option:
₦5,000; the purchase of ₦5,000 was recorded only as a debit to Purchases, the corresponding credit to Accounts Payable was omitted.

About This Question

This is Waec Model Questions Vol1 2022 Financial Accounting Question 7. It is one of the objective questions from the 2022 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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