Neco 2025 Financial Accounting Question 8
Practice objective / multiple choice question 8 from the 2025 Neco Financial Accounting examination.
The Debtors (Sales Ledger) account of a sole trader shows an opening debit balance of \(80,000\). During the month the following transactions were recorded: credit sales of \(120,000\); cash receipts from debtors of \(90,000\); sales returns (returns inwards) of \(5,000\); and a discount allowed of \(2\%\) on the cash receipts. Determine the closing balance of the Debtors account and state whether it is a debit or credit balance.
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About This Question
This is Neco 2025 Financial Accounting Question 8. It is one of the objective questions from the 2025 Neco Financial Accounting examination.
Difficulty level: Medium .
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