Neco 2019 Financial Accounting Question 39

Practice objective / multiple choice question 39 from the 2019 Neco Financial Accounting examination.

Neco 2019 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 39 NECO • 2019 • FINANCIAL_ACCOUNTING • objective

During the month the following transactions were recorded:\n1. Purchased equipment on credit for \(\text{₦}250,000\).\n2. Paid cash freight of \(\text{₦}15,000\) for the equipment.\n3. Received cash of \(\text{₦}40,000\) from a customer to settle an account receivable, and gave a cash discount of 2% on the amount received.\nPrepare the appropriate journal entries and state the resulting balances of Equipment, Accounts Payable, Cash, Discount Received and Accounts Receivable after these entries (assume all other balances were zero).

Answer Options

A. Equipment \\ (\\text{₦}250,000\\); Accounts Payable \\ (\\text{₦}250,000\\) credit; Cash \\ (\\text{₦}39,200\\); Discount Received \\ (\\text{₦}800\\); Accounts Receivable \\ (\\text{₦}0\\).
B. Equipment \\ (\\text{₦}265,000\\); Accounts Payable \\ (\\text{₦}250,000\\) credit; Cash \\ (\\text{₦}40,000\\); Discount Received \\ (\\text{₦}0\\); Accounts Receivable \\ (\\text{₦}0\\).
Correct Answer C. Equipment \(\text{₦}265,000\); Accounts Payable \(\text{₦}250,000\) credit; Cash \(\text{₦}39,200\); Discount Received \(\text{₦}800\); Accounts Receivable \(\text{₦}0\).
D. Equipment \\ (\\text{₦}265,000\\); Accounts Payable \\ (\\text{₦}0\\) credit; Cash \\ (\\text{₦}39,200\\); Discount Received \\ (\\text{₦}800\\); Accounts Receivable \\ (\\text{₦}0\\).
Correct Answer
C
Correct Option:
Equipment \(\text{₦}265,000\); Accounts Payable \(\text{₦}250,000\) credit; Cash \(\text{₦}39,200\); Discount Received \(\text{₦}800\); Accounts Receivable \(\text{₦}0\).

About This Question

This is Neco 2019 Financial Accounting Question 39. It is one of the objective questions from the 2019 Neco Financial Accounting examination.

Difficulty level: Medium .

View More Neco 2019 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