Neco Model Questions Vol1 2020 Financial Accounting Question 38

Practice objective / multiple choice question 38 from the 2020 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2020 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 38 NECO_MODEL_QUESTIONS_VOL1 • 2020 • FINANCIAL_ACCOUNTING • objective

On 15 March a business bought equipment for \(N45,000\) cash and paid \(N5,000\) for its installation. Record the journal entry using the double‑entry principle.

Answer Options

Correct Answer A. Debit Equipment N45,000; Debit Installation Expense N5,000; Credit Cash N50,000
B. Debit Equipment N50,000; Debit Installation Expense N5,000; Credit Cash N55,000
C. Debit Equipment N45,000; Credit Installation Expense N5,000; Credit Cash N50,000
D. Debit Equipment N45,000; Debit Installation Expense N5,000; Credit Cash N45,000
Correct Answer
A
Correct Option:
Debit Equipment N45,000; Debit Installation Expense N5,000; Credit Cash N50,000

About This Question

This is Neco Model Questions Vol1 2020 Financial Accounting Question 38. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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