Gce Model Questions Vol1 2017 Financial Accounting Question 12

Practice objective / multiple choice question 12 from the 2017 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2017 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 12 GCE_MODEL_QUESTIONS_VOL1 • 2017 • FINANCIAL_ACCOUNTING • objective

On 1 June 2017, ABC Co purchased a piece of equipment for \(\text{₦}120,000\) cash. The supplier offered a 2% cash discount if payment is made within 10 days. The company paid within the discount period. Record the journal entry to reflect this transaction.

Answer Options

A. Debit Equipment 120,000; Credit Cash 120,000; Credit Purchase Discounts Received 0
B. Debit Equipment 117,600; Credit Cash 117,600; Credit Purchase Discounts Received 0
C. Debit Equipment 120,000; Credit Cash 118,800; Credit Purchase Discounts Received 1,200
Correct Answer D. Debit Equipment 120,000; Credit Cash 117,600; Credit Purchase Discounts Received 2,400
Correct Answer
D
Correct Option:
Debit Equipment 120,000; Credit Cash 117,600; Credit Purchase Discounts Received 2,400

About This Question

This is Gce Model Questions Vol1 2017 Financial Accounting Question 12. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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