Neco Model Questions Vol1 2021 Financial Accounting Question 20

Practice objective / multiple choice question 20 from the 2021 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2021 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 20 NECO_MODEL_QUESTIONS_VOL1 • 2021 • FINANCIAL_ACCOUNTING • objective

On 15\,March, XYZ Co. purchased equipment costing \(\text{₦}120,000\). The company paid a cash down‑payment of \(\text{₦}30,000\) and agreed to pay the balance on credit. Record the journal entry for this transaction.

Answer Options

A. Equipment Dr 120,000; Cash Cr 90,000; Accounts Payable Cr 30,000
Correct Answer B. Equipment Dr 120,000; Cash Cr 30,000; Accounts Payable Cr 90,000
C. Equipment Dr 120,000; Cash Cr 30,000; Notes Payable Cr 90,000
D. Equipment Dr 120,000; Cash Dr 30,000; Accounts Payable Cr 90,000
Correct Answer
B
Correct Option:
Equipment Dr 120,000; Cash Cr 30,000; Accounts Payable Cr 90,000

About This Question

This is Neco Model Questions Vol1 2021 Financial Accounting Question 20. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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