Neco Model Questions Vol1 2022 Financial Accounting Question 39

Practice objective / multiple choice question 39 from the 2022 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2022 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 39 NECO_MODEL_QUESTIONS_VOL1 • 2022 • FINANCIAL_ACCOUNTING • objective

During June the company purchased inventory on credit for \(\text{₦}60,000\). Of this amount, \(\text{₦}20,000\) was paid in cash immediately and the balance was left on account. Freight‑in of \(\text{₦}3,000\) was paid cash at the time of purchase. Record the journal entry for these transactions, showing the debit and credit accounts with their respective amounts.

Answer Options

A. Debit Inventory ₦60,000; Credit Cash ₦20,000; Credit Accounts Payable ₦40,000
B. Debit Inventory ₦60,000; Credit Cash ₦23,000; Credit Accounts Payable ₦37,000
Correct Answer C. Debit Inventory ₦63,000; Credit Cash ₦23,000; Credit Accounts Payable ₦40,000
D. Debit Inventory ₦63,000; Credit Cash ₦20,000; Credit Accounts Payable ₦43,000
Correct Answer
C
Correct Option:
Debit Inventory ₦63,000; Credit Cash ₦23,000; Credit Accounts Payable ₦40,000

About This Question

This is Neco Model Questions Vol1 2022 Financial Accounting Question 39. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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