Gce Model Questions Vol1 2023 Financial Accounting Question 45

Practice objective / multiple choice question 45 from the 2023 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2023 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 45 GCE_MODEL_QUESTIONS_VOL1 • 2023 • FINANCIAL_ACCOUNTING • objective

On 1 July, Delta Co purchased machinery for \(120,000\) cash. The supplier offered a 5 % cash discount if payment is made within 30 days, and the company paid within the discount period. Record the journal entry for this transaction.

Answer Options

A. Debit Machinery 120,000; Credit Cash 120,000; Credit Discount Received 0
B. Debit Machinery 114,000; Credit Cash 114,000; Credit Discount Received 6,000
Correct Answer C. Debit Machinery 120,000; Credit Cash 114,000; Credit Discount Received 6,000
D. Debit Machinery 120,000; Credit Cash 118,800; Credit Discount Received 1,200
Correct Answer
C
Correct Option:
Debit Machinery 120,000; Credit Cash 114,000; Credit Discount Received 6,000

About This Question

This is Gce Model Questions Vol1 2023 Financial Accounting Question 45. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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