Neco 2020 Financial Accounting Question 5
Practice objective / multiple choice question 5 from the 2020 Neco Financial Accounting examination.
The following transactions were recorded in the journal for March (amounts in Naira): 1. Purchased office supplies on credit N12,000. 2. Received cash from a client for services rendered N25,000. 3. Paid cash for rent N8,000. 4. Sold equipment for cash N15,000 (original cost N20,000, accumulated depreciation N5,000). 5. Borrowed from bank, cash N30,000, note payable N30,000. The cash book (single‑entry) mistakenly recorded the equipment sale receipt as N20,000 instead of N15,000. Assuming the opening cash balance was zero, determine the corrected cash balance at the end of March and the amount by which the cash book must be adjusted.
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About This Question
This is Neco 2020 Financial Accounting Question 5. It is one of the objective questions from the 2020 Neco Financial Accounting examination.
Difficulty level: Medium .
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