Neco 2020 Financial Accounting Question 3

Practice objective / multiple choice question 3 from the 2020 Neco Financial Accounting examination.

Neco 2020 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 3 NECO • 2020 • FINANCIAL_ACCOUNTING • objective

The trial balance shows the following balances (in Naira): Dr - Purchases N25,000, Dr - Salaries N15,000, Dr - Rent N20,000; Cr - Cash N30,000, Cr - Suspense N30,000. It is later discovered that the Purchases entry was posted on the wrong side (it should be a credit) and a cash receipt of N5,000 was omitted. What total amount should be transferred from the Suspense Account to correct the trial balance, and what are the corrected balances of Purchases and Cash?

Answer Options

A. 25,000; Purchases credit 25,000; Cash credit 30,000
B. 35,000; Purchases credit 25,000; Cash credit 40,000
C. 30,000; Purchases credit 20,000; Cash credit 35,000
Correct Answer D. 30,000; Purchases credit 25,000; Cash credit 35,000
Correct Answer
D
Correct Option:
30,000; Purchases credit 25,000; Cash credit 35,000

About This Question

This is Neco 2020 Financial Accounting Question 3. It is one of the objective questions from the 2020 Neco Financial Accounting examination.

Difficulty level: Medium .

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