Neco Model Questions Vol1 2018 Financial Accounting Question 1
Practice objective / multiple choice question 1 from the 2018 Neco Model Questions Vol1 Financial Accounting examination.
The purchases ledger shows purchases of \(\₦1,200,000\), purchase returns of \(\₦45,000\) and discounts received of \(\₦12,000\). The purchases control account carries a debit balance of \(\₦1,150,000\). It is later discovered that a purchase return of \(\₦8,000\) was omitted and a discount of \(\₦5,000\) was posted as a debit instead of a credit. Determine the corrected balance of the purchases control account and state whether the original balance was overstated or understated.
Answer Options
About This Question
This is Neco Model Questions Vol1 2018 Financial Accounting Question 1. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.