Neco Model Questions Vol1 2019 Financial Accounting Question 45

Practice objective / multiple choice question 45 from the 2019 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2019 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 45 NECO_MODEL_QUESTIONS_VOL1 • 2019 • FINANCIAL_ACCOUNTING • objective

On 1 March a company bought equipment costing \(\N250,000\). It paid \(\N70,000\) in cash and financed the balance by a bank loan. Record the journal entry for this transaction using double‑entry bookkeeping.

Answer Options

A. Debit Equipment \N250,000; Credit Cash \N180,000; Credit Bank Loan \N70,000
Correct Answer B. Debit Equipment \N250,000; Credit Cash \N70,000; Credit Bank Loan \N180,000
C. Debit Equipment \N250,000; Credit Cash \N70,000; Credit Bank Loan \N250,000
D. Debit Equipment \N250,000; Credit Cash \N70,000; Credit Loan Payable \N180,000
Correct Answer
B
Correct Option:
Debit Equipment \N250,000; Credit Cash \N70,000; Credit Bank Loan \N180,000

About This Question

This is Neco Model Questions Vol1 2019 Financial Accounting Question 45. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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