Neco 2021 Financial Accounting Question 29
Practice objective / multiple choice question 29 from the 2021 Neco Financial Accounting examination.
The Purchases account carries a debit balance of \u20A6 120,000. The Purchases Returns and Allowances account shows a credit balance of \u20A6 15,000. During the year the company purchased inventory on credit for \u20A6 50,000 and later returned goods worth \u20A6 8,000. The return was mistakenly posted as a debit of \u20A6 8,000 to the Purchases Returns and Allowances account instead of a credit. After correcting this error, what should be the credit balance of the Purchases Returns and Allowances account?
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About This Question
This is Neco 2021 Financial Accounting Question 29. It is one of the objective questions from the 2021 Neco Financial Accounting examination.
Difficulty level: Medium .
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