Gce Model Questions Vol1 2023 Financial Accounting Question 22

Practice objective / multiple choice question 22 from the 2023 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2023 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 22 GCE_MODEL_QUESTIONS_VOL1 • 2023 • FINANCIAL_ACCOUNTING • objective

A business purchases equipment with a list price of \(5,000\) naira. The supplier offers a trade discount of 5% and the business pays cash equal to 10% of the net price, the balance being placed on credit. Record the journal entry for this transaction.

Answer Options

A. Debit Equipment 4,750; Credit Cash 500; Credit Trade Payables 4,250
B. Debit Equipment 4,750; Credit Cash 475; Credit Trade Payables 4,525
Correct Answer C. Debit Equipment 4,750; Credit Cash 475; Credit Trade Payables 4,275
D. Debit Equipment 5,000; Credit Cash 500; Credit Trade Payables 4,500
Correct Answer
C
Correct Option:
Debit Equipment 4,750; Credit Cash 475; Credit Trade Payables 4,275

About This Question

This is Gce Model Questions Vol1 2023 Financial Accounting Question 22. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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