Gce Model Questions Vol1 2018 Financial Accounting Question 16
Practice objective / multiple choice question 16 from the 2018 Gce Model Questions Vol1 Financial Accounting examination.
During the month the following transactions were recorded: 1. Purchased inventory on credit for ₦100,000 plus VAT at 5 %. 2. Sold goods for cash ₦200,000; the cost of goods sold was ₦140,000. 3. Paid salaries cash ₦30,000. 4. Received a bank loan of ₦50,000 (interest payable later). The opening cash balance was ₦40,000. The trial balance shows a cash balance of ₦255,000, which is ₦5,000 less than the cash that should result from the transactions. Assuming the only error is that the VAT on the purchase was mistakenly treated as a cash payment and not recorded, determine the amount of VAT that should have been recorded.
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About This Question
This is Gce Model Questions Vol1 2018 Financial Accounting Question 16. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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