Neco 2020 Financial Accounting Question 19

Practice objective / multiple choice question 19 from the 2020 Neco Financial Accounting examination.

Neco 2020 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 19 NECO • 2020 • FINANCIAL_ACCOUNTING • objective

Four transactions occurred in June for ABC Ltd.:\n1. Purchased inventory on credit for \(\text{₦}250,000\).\n2. Sold goods for cash amounting to \(\text{₦}180,000\).\n3. Paid rent cash of \(\text{₦}20,000\).\n4. Received a bank loan in cash of \(\text{₦}100,000\).\nIdentify the appropriate book of original entry for each transaction (Purchases Journal, Sales Journal, Cash Payments Journal, Cash Receipts Journal) and compute the total amount that will be posted to the Purchases Journal.

Answer Options

A. Purchases Journal: transaction 1; Sales Journal: transaction 2; Cash Payments Journal: transaction 4; Cash Receipts Journal: transaction 3. Total posted to Purchases Journal = ₦250,000
Correct Answer B. Purchases Journal: transaction 1; Sales Journal: transaction 2; Cash Payments Journal: transaction 3; Cash Receipts Journal: transaction 4. Total posted to Purchases Journal = ₦250,000
C. Purchases Journal: transaction 2; Sales Journal: transaction 1; Cash Payments Journal: transaction 3; Cash Receipts Journal: transaction 4. Total posted to Purchases Journal = ₦180,000
D. Purchases Journal: transaction 1; Sales Journal: transaction 2; Cash Payments Journal: transaction 3; Cash Receipts Journal: transaction 4. Total posted to Purchases Journal = ₦100,000
Correct Answer
B
Correct Option:
Purchases Journal: transaction 1; Sales Journal: transaction 2; Cash Payments Journal: transaction 3; Cash Receipts Journal: transaction 4. Total posted to Purchases Journal = ₦250,000

About This Question

This is Neco 2020 Financial Accounting Question 19. It is one of the objective questions from the 2020 Neco Financial Accounting examination.

Difficulty level: Medium .

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