Neco 2018 Financial Accounting Question 2
Practice essay / theory question 2 from the 2018 Neco Financial Accounting examination. This question covers Double Entry .
A small trading business recorded the following transactions for the month of March 2025. 1. Opening stock of goods: ₦120,000. 2. Purchases of goods: ₦250,000, paid cash. 3. Sales revenue: ₦500,000, of which ₦80,000 were on credit; the balance was cash. 4. Sales returns: ₦20,000 (cash refund). 5. Purchase returns: ₦10,000 (cash received). 6. Freight‑in charges: ₦5,000, paid cash. 7. Salaries expense: ₦30,000, paid cash. 8. Depreciation on equipment (cost ₦60,000, straight‑line over 5 years, no residual value) for the month. 9. Closing stock determined by physical count: ₦100,000. 10. Opening cash balance on 1 March: ₦50,000. Using the double‑entry system, answer the following:
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This is Neco 2018 Financial Accounting Question 2. It is one of the essay questions from the 2018 Neco Financial Accounting examination.
The question covers Double Entry .
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