Gce Model Questions Vol1 2022 Financial Accounting Question 27

Practice objective / multiple choice question 27 from the 2022 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2022 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 27 GCE_MODEL_QUESTIONS_VOL1 • 2022 • FINANCIAL_ACCOUNTING • objective

Company A bought equipment for \(\text{₦}25,000\) cash and received a cash discount of 2 % on the purchase. Record the journal entry for this transaction.

Answer Options

A. Debit Equipment ₦24,500; Credit Cash ₦24,500; Credit Discount Received ₦0
Correct Answer B. Debit Equipment ₦25,000; Credit Cash ₦24,500; Credit Discount Received ₦500
C. Debit Equipment ₦25,000; Credit Cash ₦25,000; Credit Discount Received ₦0
D. Debit Equipment ₦25,000; Credit Cash ₦24,000; Credit Discount Received ₦1,000
Correct Answer
B
Correct Option:
Debit Equipment ₦25,000; Credit Cash ₦24,500; Credit Discount Received ₦500

About This Question

This is Gce Model Questions Vol1 2022 Financial Accounting Question 27. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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