Neco 2017 Financial Accounting Question 39

Practice objective / multiple choice question 39 from the 2017 Neco Financial Accounting examination.

Neco 2017 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 39 NECO • 2017 • FINANCIAL_ACCOUNTING • objective

The trial balance of Gamma Co. as at 31\,March\,2020 shows the following balances (figures in \u20A6\,000): Dr - Cash \(50\), Trade receivables \(70\), Inventory \(80\), Equipment \(120\); Cr - Accumulated depreciation - Equipment \(30\), Trade payables \(60\), Loan payable \(40\), Share capital \(100\), Retained earnings \(30\). The trial balance does not balance. Identify the error and state the correcting journal entry required to balance the trial balance.

Answer Options

Correct Answer A. Debit Depreciation expense \u20A6 60\,000; Credit Accumulated depreciation - Equipment \u20A6 60\,000
B. Debit Depreciation expense \u20A6 60,000; Credit Loan payable \u20A6 60,000
C. Debit Depreciation expense \u20A6 30,000; Credit Accumulated depreciation - Equipment \u20A6 30,000
D. Debit Equipment \u20A6 60,000; Credit Accumulated depreciation - Equipment \u20A6 60,000
Correct Answer
A
Correct Option:
Debit Depreciation expense \u20A6 60\,000; Credit Accumulated depreciation - Equipment \u20A6 60\,000

About This Question

This is Neco 2017 Financial Accounting Question 39. It is one of the objective questions from the 2017 Neco Financial Accounting examination.

Difficulty level: Medium .

View More Neco 2017 Financial Accounting Questions More Neco Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support