Neco 2017 Financial Accounting Question 34
Practice objective / multiple choice question 34 from the 2017 Neco Financial Accounting examination.
A company bought inventory on credit for \(150,000\) naira, terms 2% discount if paid within the month. It paid cash \(147,000\) naira within the month (the discount was taken), paid freight‑in of \(5,000\) naira by cheque, and returned goods worth \(20,000\) naira. The cash payment was recorded as a debit to Creditors \(147,000\) and a credit to Cash \(147,000\), but the discount received of \(3,000\) naira was omitted. Determine the corrected balance of the Purchases account after adjusting for the discount and the returns.
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About This Question
This is Neco 2017 Financial Accounting Question 34. It is one of the objective questions from the 2017 Neco Financial Accounting examination.
Difficulty level: Medium .
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