Neco 2018 Financial Accounting Question 30

Practice objective / multiple choice question 30 from the 2018 Neco Financial Accounting examination.

Neco 2018 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 30 NECO • 2018 • FINANCIAL_ACCOUNTING • objective

On 1 March a company purchased equipment for \\(250,000\\) naira cash. On 5 March it sold goods on credit for \\(180,000\\) naira, the cost of those goods being \\(120,000\\) naira. On 10 March it received a bank loan of \\(100,000\\) naira, interest to be paid at year‑end. On 15 March it paid salaries of \\(30,000\\) naira cash. On 20 March it received cash of \\(50,000\\) naira from a customer for a previous credit sale. Prepare the journal entries for these transactions and state the balances of the Equipment account, the Bank Loan liability, and the Salaries Expense account after posting.

Answer Options

A. Equipment: 250,000 naira (credit); Bank Loan: 100,000 naira (debit); Salaries Expense: 30,000 naira (debit)
B. Equipment: 250,000 naira (debit); Bank Loan: 100,000 naira (credit); Salaries Expense: 20,000 naira (debit)
C. Equipment: 200,000 naira (debit); Bank Loan: 100,000 naira (credit); Salaries Expense: 30,000 naira (debit)
Correct Answer D. Equipment: 250,000 naira (debit); Bank Loan: 100,000 naira (credit); Salaries Expense: 30,000 naira (debit)
Correct Answer
D
Correct Option:
Equipment: 250,000 naira (debit); Bank Loan: 100,000 naira (credit); Salaries Expense: 30,000 naira (debit)

About This Question

This is Neco 2018 Financial Accounting Question 30. It is one of the objective questions from the 2018 Neco Financial Accounting examination.

Difficulty level: Medium .

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