Neco 2024 Financial Accounting Question 44

Practice objective / multiple choice question 44 from the 2024 Neco Financial Accounting examination.

Neco 2024 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 44 NECO • 2024 • FINANCIAL_ACCOUNTING • objective

During posting, a clerk mistakenly debited the Purchases account ₦45,000 instead of the Purchases Returns account, and credited the Suspense account ₦45,000. The entry that should have been made was a debit to Purchases Returns ₦45,000 and a credit to Cash ₦45,000. State the effect of this error on the trial balance and give the correcting entry required to rectify the mistake.

Answer Options

A. Debit Purchases ₦45,000, Credit Suspense ₦45,000; then Debit Cash ₦45,000, Credit Purchases Returns ₦45,000
B. Debit Suspense ₦45,000, Credit Purchases Returns ₦45,000; then Debit Purchases ₦45,000, Credit Cash ₦45,000
C. Debit Purchases Returns ₦45,000, Credit Suspense ₦45,000; then Debit Cash ₦45,000, Credit Purchases ₦45,000
Correct Answer D. Debit Suspense ₦45,000, Credit Purchases ₦45,000; then Debit Purchases Returns ₦45,000, Credit Cash ₦45,000
Correct Answer
D
Correct Option:
Debit Suspense ₦45,000, Credit Purchases ₦45,000; then Debit Purchases Returns ₦45,000, Credit Cash ₦45,000

About This Question

This is Neco 2024 Financial Accounting Question 44. It is one of the objective questions from the 2024 Neco Financial Accounting examination.

Difficulty level: Medium .

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