Neco 2021 Financial Accounting Question 39

Practice objective / multiple choice question 39 from the 2021 Neco Financial Accounting examination.

Neco 2021 Financial Accounting Objective / Multiple Choice Easy Difficulty

Question 39 NECO • 2021 • FINANCIAL_ACCOUNTING • objective

Record the journal entry for a purchase of inventory costing \(\text{₦}50,000\) on credit where the supplier offers a \(2\%\) cash discount that the business avails by paying within the discount period.

A. Debit Accounts Payable ₦50,000; Credit Cash ₦50,000; Credit Discount Received ₦0

Correct Answer B. Debit Accounts Payable ₦50,000; Credit Cash ₦49,000; Credit Discount Received ₦1,000

C. Debit Accounts Payable ₦50,000; Credit Cash ₦48,000; Credit Discount Received ₦2,000

D. Debit Inventory ₦50,000; Credit Accounts Payable ₦48,000; Credit Cash ₦2,000

Correct Answer

Correct Option:

Debit Accounts Payable ₦50,000; Credit Cash ₦49,000; Credit Discount Received ₦1,000

This is Neco 2021 Financial Accounting Question 39. It is one of the objective questions from the 2021 Neco Financial Accounting examination.

Difficulty level: Easy .

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