Neco Model Questions Vol1 2020 Financial Accounting Question 43

Practice objective / multiple choice question 43 from the 2020 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2020 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 43 NECO_MODEL_QUESTIONS_VOL1 • 2020 • FINANCIAL_ACCOUNTING • objective

During the month the following transactions were recorded:\n\n1. Purchased equipment for \(120,000\) cash.\n2. Sold goods on credit for \(80,000\); cost of goods sold was \(50,000\).\n3. Received cash from a debtor amounting to \(30,000\).\n4. Paid wages \(25,000\) in cash.\n5. Purchased inventory on credit for \(60,000\).\n\nAfter posting all transactions to the general ledger, (a) what is the balance (debit or credit) of the Inventory account? (b) What is the total of the debit side of the trial balance?

Answer Options

A. Inventory - 12,500 (debit); Total debit side - 257,500
B. Inventory - 5,000 (debit); Total debit side - 250,000
Correct Answer C. Inventory - 10,000 (debit); Total debit side - 255,000
D. Inventory - 15,000 (debit); Total debit side - 260,000
Correct Answer
C
Correct Option:
Inventory - 10,000 (debit); Total debit side - 255,000

About This Question

This is Neco Model Questions Vol1 2020 Financial Accounting Question 43. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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