Gce Model Questions Vol1 2025 Financial Accounting Question 35
Practice objective / multiple choice question 35 from the 2025 Gce Model Questions Vol1 Financial Accounting examination.
On 15 March 2025 XYZ Ltd received a bank loan of £ 50 000 at 6 % per annum payable annually. The loan was used to purchase equipment costing £ 45 000 and to pay cash expenses of £ 3 000. The remaining £ 2 000 was retained as cash. The equipment and the expenses were paid on the same day. Assuming the opening cash balance on 1 March was £ 5 000 and there were no other cash receipts or payments during March, (a) record the journal entries for the transactions on 15 March, and (b) compute the cash balance in the cash book at the end of March.
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About This Question
This is Gce Model Questions Vol1 2025 Financial Accounting Question 35. It is one of the objective questions from the 2025 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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