Neco Model Questions Vol1 2021 Financial Accounting Question 28

Practice objective / multiple choice question 28 from the 2021 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2021 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 28 NECO_MODEL_QUESTIONS_VOL1 • 2021 • FINANCIAL_ACCOUNTING • objective

On 15 March 2021 a company bought office equipment for \(\text{₦}850,000\) cash and received a 5 % early‑payment discount. Record the journal entry using double‑entry bookkeeping.

Answer Options

Correct Answer A. Debit Office Equipment ₦850,000; Credit Cash ₦807,500; Credit Discount Received ₦42,500
B. Debit Office Equipment ₦850,000; Credit Cash ₦842,500; Credit Discount Received ₦7,500
C. Debit Office Equipment ₦845,000; Credit Cash ₦807,500; Credit Discount Received ₦37,500
D. Debit Office Equipment ₦850,000; Credit Cash ₦800,000; Credit Discount Received ₦50,000
Correct Answer
A
Correct Option:
Debit Office Equipment ₦850,000; Credit Cash ₦807,500; Credit Discount Received ₦42,500

About This Question

This is Neco Model Questions Vol1 2021 Financial Accounting Question 28. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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