Neco Model Questions Vol1 2018 Financial Accounting Question 41

Practice objective / multiple choice question 41 from the 2018 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2018 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 41 NECO_MODEL_QUESTIONS_VOL1 • 2018 • FINANCIAL_ACCOUNTING • objective

During June, a company had an opening debtor balance of \(₦250,000\). Credit sales for the month were \(₦1,200,000\). Sales returns amounted to \(₦45,000\) and trade discounts granted were \(₦30,000\). Cash received from debtors during the month is unknown. At month‑end the total of all debtor balances in the sales ledger subsidiary ledger is \(₦1,080,000\). Assuming no other entries, determine the cash received from debtors and state the balance (debit or credit and amount) of the Sales Ledger Control Account at month end.

Answer Options

A. Cash received = ₦295,000; the Sales Ledger Control Account shows a credit balance of ₦1,080,000.
Correct Answer B. Cash received = ₦295,000; the Sales Ledger Control Account shows a debit balance of ₦1,080,000.
C. Cash received = ₦300,000; the Sales Ledger Control Account shows a debit balance of ₦1,080,000.
D. Cash received = ₦295,000; the Sales Ledger Control Account shows a debit balance of ₦1,050,000.
Correct Answer
B
Correct Option:
Cash received = ₦295,000; the Sales Ledger Control Account shows a debit balance of ₦1,080,000.

About This Question

This is Neco Model Questions Vol1 2018 Financial Accounting Question 41. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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