Neco Model Questions Vol1 2018 Financial Accounting Question 15
Practice objective / multiple choice question 15 from the 2018 Neco Model Questions Vol1 Financial Accounting examination.
The trial balance of a firm shows the following balances (in \(\N\) ):\n\n- Cash: Debit \N50,000\n- Accounts Receivable: Debit \N30,000\n- Inventory: Debit \N40,000\n- Equipment: Debit \N80,000\n- Purchases: Debit \N70,000\n- Rent Expense: Debit \N10,000\n- Salaries Expense: Debit \N15,000\n- Accounts Payable: Credit \N45,000\n- Capital: Credit \N120,000\n- Sales Revenue: Credit \N150,000\n\nThe total debits equal \N295,000 and the total credits equal \N315,000, giving a credit excess of \N20,000. It is known that one account has been misstated. Identify the account and state its correct balance so that the trial balance is properly balanced. Also give the corrected total of debits and credits.
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This is Neco Model Questions Vol1 2018 Financial Accounting Question 15. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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