Neco 2024 Financial Accounting Question 40

Practice objective / multiple choice question 40 from the 2024 Neco Financial Accounting examination.

Neco 2024 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 40 NECO • 2024 • FINANCIAL_ACCOUNTING • objective

The business received a bank loan of ₦500,000. Of this amount, ₦200,000 was immediately deposited in the bank and the remaining ₦300,000 was kept as cash. Record the journal entries required to show the receipt of the loan and the cash‑bank split.

Answer Options

Correct Answer A. Debit Bank ₦200,000; Debit Cash ₦300,000; Credit Loan Payable ₦500,000
B. Debit Bank ₦200,000; Debit Cash ₦300,000; Credit Loan Payable ₦400,000
C. Debit Bank ₦500,000; Credit Loan Payable ₦500,000
D. Debit Bank ₦300,000; Debit Cash ₦200,000; Credit Loan Payable ₦500,000
Correct Answer
A
Correct Option:
Debit Bank ₦200,000; Debit Cash ₦300,000; Credit Loan Payable ₦500,000

About This Question

This is Neco 2024 Financial Accounting Question 40. It is one of the objective questions from the 2024 Neco Financial Accounting examination.

Difficulty level: Easy .

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