Neco 2022 Financial Accounting Question 10

Practice objective / multiple choice question 10 from the 2022 Neco Financial Accounting examination.

Neco 2022 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 10 NECO • 2022 • FINANCIAL_ACCOUNTING • objective

The trial balance of DEF Ltd shows the following totals:\n- Total debits: ₦1,250,000\n- Total credits: ₦1,240,000\nIt is discovered that a sales return of ₦10,000 was mistakenly debited instead of being credited. After correcting this error, what will be the new total of debits and credits, and by how much was the trial balance originally out of balance?

Answer Options

A. The trial balance was out of balance by ₦20,000; after correction both debit and credit totals are ₦1,260,000.
B. The trial balance was out of balance by ₦10,000; after correction both debit and credit totals are ₦1,240,000.
C. The trial balance was out of balance by ₦0; after correction both debit and credit totals are ₦1,250,000.
Correct Answer D. The trial balance was out of balance by ₦10,000; after correction both debit and credit totals are ₦1,250,000.
Correct Answer
D
Correct Option:
The trial balance was out of balance by ₦10,000; after correction both debit and credit totals are ₦1,250,000.

About This Question

This is Neco 2022 Financial Accounting Question 10. It is one of the objective questions from the 2022 Neco Financial Accounting examination.

Difficulty level: Medium .

View More Neco 2022 Financial Accounting Questions More Neco Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support