Gce Model Questions Vol1 2019 Financial Accounting Question 20

Practice objective / multiple choice question 20 from the 2019 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2019 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 20 GCE_MODEL_QUESTIONS_VOL1 • 2019 • FINANCIAL_ACCOUNTING • objective

A company purchases equipment on credit for a total cost of \(70,000\), of which \(50,000\) is payable to a supplier and the remaining \(20,000\) is financed by a note payable. Record the journal entry for this transaction using the double‑entry system.

Answer Options

Correct Answer A. Debit Equipment 70,000; Credit Accounts Payable 50,000; Credit Notes Payable 20,000
B. Debit Equipment 70,000; Credit Accounts Payable 20,000; Credit Notes Payable 50,000
C. Debit Equipment 50,000; Credit Accounts Payable 50,000; Credit Notes Payable 20,000
D. Debit Equipment 70,000; Credit Accounts Payable 50,000; Debit Notes Payable 20,000
Correct Answer
A
Correct Option:
Debit Equipment 70,000; Credit Accounts Payable 50,000; Credit Notes Payable 20,000

About This Question

This is Gce Model Questions Vol1 2019 Financial Accounting Question 20. It is one of the objective questions from the 2019 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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