Neco Model Questions Vol1 2022 Financial Accounting Question 19

Practice objective / multiple choice question 19 from the 2022 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2022 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 19 NECO_MODEL_QUESTIONS_VOL1 • 2022 • FINANCIAL_ACCOUNTING • objective

A partnership purchases equipment with a list price of \(\₦150,000\). The supplier offers a 5 % trade discount if payment is made within 30 days. The partnership pays \(\₦30,000\) cash immediately and the balance is due in 60 days. Record the journal entry on the date of purchase.

Answer Options

A. Dr Equipment ₦150,000; Cr Cash ₦30,000; Cr Accounts Payable ₦120,000
B. Dr Equipment ₦142,500; Cr Cash ₦35,000; Cr Accounts Payable ₦107,500
Correct Answer C. Dr Equipment \₦142,500; Cr Cash \₦30,000; Cr Accounts Payable \₦112,500
D. Dr Equipment ₦145,000; Cr Cash ₦30,000; Cr Accounts Payable ₦115,000
Correct Answer
C
Correct Option:
Dr Equipment \₦142,500; Cr Cash \₦30,000; Cr Accounts Payable \₦112,500

About This Question

This is Neco Model Questions Vol1 2022 Financial Accounting Question 19. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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