Gce Model Questions Vol1 2021 Financial Accounting Question 2

Practice objective / multiple choice question 2 from the 2021 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2021 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 2 GCE_MODEL_QUESTIONS_VOL1 • 2021 • FINANCIAL_ACCOUNTING • objective

A company bought new equipment for \(£12,000\) cash and incurred a delivery charge of \(£800\) which was paid by cheque. Record the appropriate journal entry using double‑entry bookkeeping.

Answer Options

A. Debit Equipment £13,600; Credit Cash £12,000; Credit Bank £1,600
B. Debit Equipment £12,800; Credit Cash £12,800; Credit Bank £0
C. Debit Equipment £12,800; Credit Cash £11,200; Credit Bank £1,600
Correct Answer D. Debit Equipment £12,800; Credit Cash £12,000; Credit Bank £800
Correct Answer
D
Correct Option:
Debit Equipment £12,800; Credit Cash £12,000; Credit Bank £800

About This Question

This is Gce Model Questions Vol1 2021 Financial Accounting Question 2. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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