Gce Model Questions Vol1 2025 Financial Accounting Question 19

Practice objective / multiple choice question 19 from the 2025 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2025 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 19 GCE_MODEL_QUESTIONS_VOL1 • 2025 • FINANCIAL_ACCOUNTING • objective

XYZ Ltd purchased office supplies on credit for £2,500. Within the discount period it paid the amount and received a cash discount of 2 %. Record the journal entry for the payment.

Answer Options

A. Debit Creditors £2,500; Credit Cash £2,500; Credit Purchase Discounts £0
B. Debit Creditors £2,500; Credit Cash £2,475; Credit Purchase Discounts £25
Correct Answer C. Debit Creditors £2,500; Credit Cash £2,450; Credit Purchase Discounts £50
D. Debit Creditors £2,500; Credit Cash £2,460; Credit Purchase Discounts £40
Correct Answer
C
Correct Option:
Debit Creditors £2,500; Credit Cash £2,450; Credit Purchase Discounts £50

About This Question

This is Gce Model Questions Vol1 2025 Financial Accounting Question 19. It is one of the objective questions from the 2025 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

View More Gce Model Questions Vol1 2025 Financial Accounting Questions More Gce Model Questions Vol1 Practice Questions Back to Questions

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