Neco 2023 Financial Accounting Question 39

Practice objective / multiple choice question 39 from the 2023 Neco Financial Accounting examination.

Neco 2023 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 39 NECO • 2023 • FINANCIAL_ACCOUNTING • objective

The trial balance of a company contains the following balances (all amounts in ₦): - Sales: 150,000 (debit)\n- Purchases: 80,000 (credit)\n- Cash: 30,000 (debit)\n- Bank: 20,000 (credit)\n- Rent expense: 85,000 (debit)\n- Suspense account: 5,000 (debit)\nThe trial balance does not balance. Identify the errors and state the correcting journal entry(s) required to bring the trial balance into balance.

Answer Options

A. Debit Sales ₦150,000; Credit Purchases ₦80,000; Debit Suspense ₦30,000
B. Credit Sales ₦150,000; Debit Purchases ₦85,000; Credit Suspense ₦30,000
C. Credit Sales ₦150,000; Debit Purchases ₦80,000; Debit Suspense ₦30,000
Correct Answer D. Credit Sales ₦150,000; Debit Purchases ₦80,000; Credit Suspense ₦30,000
Correct Answer
D
Correct Option:
Credit Sales ₦150,000; Debit Purchases ₦80,000; Credit Suspense ₦30,000

About This Question

This is Neco 2023 Financial Accounting Question 39. It is one of the objective questions from the 2023 Neco Financial Accounting examination.

Difficulty level: Medium .

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