Neco 2019 Financial Accounting Question 22

Practice objective / multiple choice question 22 from the 2019 Neco Financial Accounting examination.

Neco 2019 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 22 NECO • 2019 • FINANCIAL_ACCOUNTING • objective

The trial balance of XYZ Ltd shows total debits of \(\text{₦}1,250,000\) and total credits of \(\text{₦}1,200,000\). On review, the accountant discovers that a purchase of office supplies costing \(\text{₦}30,000\) was mistakenly recorded as \(\text{₦}3,000\) in the Purchases account. Determine (a) the amount that should be transferred to or from the suspense account to balance the trial balance, and (b) the corrected total of the Purchases account.

Answer Options

A. a) ₦77,000 to be credited to suspense account; b) Corrected Purchases = ₦33,000
B. a) ₦77,000 to be debited to suspense account; b) Corrected Purchases = ₦30,000
C. a) ₦70,000 to be credited to suspense account; b) Corrected Purchases = ₦30,000
Correct Answer D. a) ₦77,000 to be credited to suspense account; b) Corrected Purchases = ₦30,000
Correct Answer
D
Correct Option:
a) ₦77,000 to be credited to suspense account; b) Corrected Purchases = ₦30,000

About This Question

This is Neco 2019 Financial Accounting Question 22. It is one of the objective questions from the 2019 Neco Financial Accounting examination.

Difficulty level: Medium .

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