Neco Model Questions Vol1 2019 Financial Accounting Question 11

Practice objective / multiple choice question 11 from the 2019 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2019 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 11 NECO_MODEL_QUESTIONS_VOL1 • 2019 • FINANCIAL_ACCOUNTING • objective

On 1 March, XYZ Ltd purchased a computer for (₦150{,}000) cash and also incurred a service fee of (₦20{,}000) to be paid later. Prepare the journal entry recording this transaction.

Answer Options

A. Debit Computer Equipment ₦150,000; Debit Service Expense ₦20,000; Credit Cash ₦20,000; Credit Accounts Payable ₦150,000.
Correct Answer B. Debit Computer Equipment ₦150,000; Debit Service Expense ₦20,000; Credit Cash ₦150,000; Credit Accounts Payable ₦20,000.
C. Debit Computer Equipment ₦150,000; Debit Service Expense ₦20,000; Credit Cash ₦150,000; Credit Service Payable ₦20,000.
D. Debit Computer Equipment ₦150,000; Credit Service Expense ₦20,000; Credit Cash ₦150,000; Credit Accounts Payable ₦20,000.
Correct Answer
B
Correct Option:
Debit Computer Equipment ₦150,000; Debit Service Expense ₦20,000; Credit Cash ₦150,000; Credit Accounts Payable ₦20,000.

About This Question

This is Neco Model Questions Vol1 2019 Financial Accounting Question 11. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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