Gce Model Questions Vol1 2024 Financial Accounting Question 16

Practice objective / multiple choice question 16 from the 2024 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2024 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 16 GCE_MODEL_QUESTIONS_VOL1 • 2024 • FINANCIAL_ACCOUNTING • objective

A company bought equipment with a list price of \(\text{₦}150,000\). The supplier gave a cash discount of 5% on the purchase price. Record the journal entry for this transaction, showing the amounts to be debited and credited.

Answer Options

A. Debit Equipment ₦150,000; Credit Cash ₦150,000; Credit Discount Received ₦0
B. Debit Equipment ₦150,000; Credit Cash ₦147,500; Credit Discount Received ₦2,500
Correct Answer C. Debit Equipment ₦150,000; Credit Cash ₦142,500; Credit Discount Received ₦7,500
D. Debit Equipment ₦150,000; Credit Cash ₦140,000; Credit Discount Received ₦10,000
Correct Answer
C
Correct Option:
Debit Equipment ₦150,000; Credit Cash ₦142,500; Credit Discount Received ₦7,500

About This Question

This is Gce Model Questions Vol1 2024 Financial Accounting Question 16. It is one of the objective questions from the 2024 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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