Neco Model Questions Vol1 2021 Financial Accounting Question 16
Practice objective / multiple choice question 16 from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
The trial balance of XYZ Ltd shows the following balances (all amounts in ₦): Cash \(\text{Dr }18,000\); Bank \(\text{Dr }12,000\); Accounts Receivable \(\text{Dr }25,000\); Equipment \(\text{Dr }40,000\); Sales \(\text{Cr }70,000\); Capital \(\text{Cr }30,000\); Rent Expense \(\text{Dr }5,000\). The total of debits equals the total of credits. Later the accountant discovers that the Equipment account of \(\text{₦}40,000\) was mistakenly recorded on the debit side instead of the credit side. To correct the trial balance, a depreciation expense is to be recorded. What amount of depreciation expense (debit) should be entered so that the trial balance balances after the correction?
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About This Question
This is Neco Model Questions Vol1 2021 Financial Accounting Question 16. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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