Neco Model Questions Vol1 2018 Financial Accounting Question 2

Practice objective / multiple choice question 2 from the 2018 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2018 Financial Accounting Objective / Multiple Choice Easy Difficulty

Question 2 NECO_MODEL_QUESTIONS_VOL1 • 2018 • FINANCIAL_ACCOUNTING • objective

On 1 March, a business purchased equipment for \(\₦500,000\) cash and paid freight of \(\₦20,000\) by cheque. Record the journal entries using the double‑entry system.

Answer Options

A. Debit Equipment \₦500,000; Debit Freight‑in \₦20,000; Credit Cash \₦500,000; Credit Bank \₦20,000; Credit Freight‑in \₦20,000.

Correct Answer B. Debit Equipment \₦500,000; Debit Freight‑in \₦20,000; Credit Cash \₦500,000; Credit Bank \₦20,000.

C. Debit Equipment \₦480,000; Debit Freight‑in \₦20,000; Credit Cash \₦500,000; Credit Bank \₦0.

D. Debit Equipment \₦500,000; Debit Freight‑in \₦20,000; Credit Cash \₦520,000; Credit Bank \₦0.

Correct Answer

Correct Option:

Debit Equipment \₦500,000; Debit Freight‑in \₦20,000; Credit Cash \₦500,000; Credit Bank \₦20,000.

About This Question

This is Neco Model Questions Vol1 2018 Financial Accounting Question 2. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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