Gce Model Questions Vol1 2020 Financial Accounting Question 25
Practice objective / multiple choice question 25 from the 2020 Gce Model Questions Vol1 Financial Accounting examination.
A company bought equipment for cash \(18{,}000\) and received a 5% early‑payment discount, but the discount was omitted when the transaction was entered in the Purchases Journal. Later, goods were sold on credit for \(12{,}000\) with terms 2/10, net of discount, yet the discount was mistakenly recorded as revenue in the Sales Journal. Identify the two books of original entry that contain these errors and state the exact amount that must be adjusted in each book.
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About This Question
This is Gce Model Questions Vol1 2020 Financial Accounting Question 25. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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