Neco 2024 Financial Accounting Question 28

Practice objective / multiple choice question 28 from the 2024 Neco Financial Accounting examination.

Neco 2024 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 28 NECO • 2024 • FINANCIAL_ACCOUNTING • objective

A trial balance shows total debits of ₦1,200,000 and total credits of ₦1,260,000. It is later discovered that a purchase of ₦30,000 was mistakenly recorded as a credit to Purchases instead of a debit. After correcting this error, what are the new totals of debits and credits, and does the trial balance now balance?

Answer Options

Correct Answer A. Debits = 1230000, Credits = 1230000; the trial balance now balances.
B. Debits = 1230000, Credits = 1260000; the trial balance does not balance.
C. Debits = 1260000, Credits = 1230000; the trial balance does not balance.
D. Debits = 1200000, Credits = 1230000; the trial balance does not balance.
Correct Answer
A
Correct Option:
Debits = 1230000, Credits = 1230000; the trial balance now balances.

About This Question

This is Neco 2024 Financial Accounting Question 28. It is one of the objective questions from the 2024 Neco Financial Accounting examination.

Difficulty level: Medium .

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