Neco Model Questions Vol1 2022 Financial Accounting Question 2
Practice objective / multiple choice question 2 from the 2022 Neco Model Questions Vol1 Financial Accounting examination.
During the month, the Purchases Returns Control Account recorded the following entries (all amounts in N):\n\(\text{Opening credit balance}=100,000\)\n\(\text{Return to Supplier A (debit)}=15,000\)\n\(\text{Return to Supplier B (debit)}=8,000\)\n\(\text{A credit entry of amount }X\) that was later discovered to be a mistake - it should have been a purchase (i.e., a debit).\nAt month‑end the individual supplier ledgers show credit balances of N12,000 (Supplier A), N6,000 (Supplier B) and N9,000 (Supplier C). The total of the supplier balances must equal the closing balance of the control account. Determine the value of \(X\) and state the correct closing balance of the Purchases Returns Control Account.
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About This Question
This is Neco Model Questions Vol1 2022 Financial Accounting Question 2. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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